IT behemoth Infosys has said in a regulatory filing that it has acquired salesforce consulting partners Simplus for $250 million (Rs 1,781.92 crore) in an all-cash transaction.
According to a regulatory filing by the Bengaluru based firm, the cost of acquisition is $200 million including contingent consideration to be paid for the acquisition of shares subject to closing adjustments. Infosys will be acquiring 100% equity stake in the company, through its wholly-owned subsidiary Infosys Nova Holdings, LLC.
In addition, there are employee incentives and retention payments amounting up to $50 million on meeting certain performance conditions over three years, it added.
Headquartered in Utah, Salt Lake City, with over 500 employees, Simplus is majority-owned by the institutional investors, founders and key employees, with Salesforce Ventures having a minority stake.
The company will offer Infosys 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, the filing said.
Pravin Rao (In Picture), Chief Operating Officer, Infosys, said, “The acquisition reaffirms our endeavour
to strengthen our strategy of scaling our digital and cloud-first digital transformation capabilities. It is key to staying relevant to the digital priorities of our clients and demonstrates our commitment to the Salesforce ecosystem.
The offerings of the new acquisition by the IT major include advisory services, implementation services, data integration, change management, and managed services. The company’s revenues have been growing heavily in the past three financial years -- $67.1 million in 2020, $42.1 million in 2019, $16.7 million in 2018. The company has offices in the US
(Chicago, San Francisco, Boston, Atlanta, Missoula, and New York), London, Manila, Sydney, and Melbourne.
Isaac Westwood, COO & Co-Founder, Simplus, added, “Infosys has incredible global scale and breadth, and joining forces gives us a powerful value proposition to enable global digital transformations.”
The acquisition is expected to close during the fourth quarter of the fiscal, subject to customary closing conditions, the filing added.
