BENGALURU: Infosys Ltd late Monday informed the stock exchanges it will acquire Simplus, one of the fastest growing Salesforce platinum partners in the US and Australia for up to $250 million. The acquisition is expected to close during the fourth quarter of fiscal 2020.
Simplus is a leading provider and advisor in cloud consulting, implementation, data integration, change management and training services for Salesforce quote-to-cash applications with more than 4,500 projects.
The cost of the acquisition is “$200 million including contingent consideration to be paid for the acquisition of shares subject to closing adjustments,” according to the regulatory filing.
“In addition, “there are employee incentives and retention payments amounting up to $50 million on meeting certain performance conditions over three years.”
This acquisition, along with that of Fluido announced in September 2018, is expected to strengthen Infosys’ position as an end-to-end Salesforce enterprise cloud solutions and services provider, providing clients with the necessary capabilities for cloud-first digital transformation.
“Simplus brings to Infosys globally recognized Salesforce expertise, industry knowledge, solution assets, deep ecosystem relationships and a broad clientele, across a variety of industries including high-tech, financial services, retail, healthcare, life sciences and manufacturing,” Infosys said in a statement.
The acquisition would also help Infosys expand its geographic presence as Simplus has offices across North America, Sydney, Melbourne, London, and a large delivery centre in Manila.
“The acquisition reaffirms our continuous endeavor to strengthen our strategy of scaling our Agile digital and cloud-first digital transformation capabilities. This acquisition is key to staying relevant to the digital priorities of our clients and demonstrates our commitment to the Salesforce ecosystem,” said Pravin Rao, chief operating officer, Infosys.
The Infosys acquisition comes at a time when last week Cognizant too made two strategic acquisitions by acquiring the French operations of Paris-based EI-Technologies and Atlanta-based Code Zero Consulting – both in a bid to strengthen its cloud capabilities and Salesforce practice.
News Source:- livemint