<p>Infosys, India’s third largest IT firm, on Monday announced a definitive agreement to fully acquire Israel-based Panaya for an enterprise value of $200 million in an all-cash deal.<br /><br /></p>.<p>The transaction is expected to close before March 31, 2015, subject to customary closing conditions, Infosys said.<br /><br />Clients use Panaya’s tools called CloudQuality Suite to gauge and speed up changes in enterprise applications like SAP Enterprise Resource Planning (ERP) and Oracle E-Business Suite. Panaya claims its tool, available as a software as a service (SaaS) application, will help clients save up to half of their integration costs.<br /><br />Using big data analytics, the Panaya tool will tell businesses which of their in-house programs will break due to an upgrade or support package to the enterprise application. <br /><br />It will then provide a solution to the possible problems, and will even help calculate the budget and the number of people required. <br /><br />According to a to a leading security analyst, this acquisition “will further help the company to enhance its efficiency, penetrate the market, and improve its margins. So it is a right fit for Infosys”.<br /><br />Infosys CEO and Managing Director Vishal Sikka said, “The acquisition of Panaya is a key step in renewing and differentiating our service lines. This will help amplify the potential of our people, freeing us from the drudgery of many repetitive tasks, so we may focus more on the important, strategic challenges faced by our clients. At the same time, Panaya’s proven technology helps dramatically simplify the costs and complexities faced by businesses in managing their enterprise application landscapes.”<br /><br />Staff will remain: Gerstel<br /><br />Panaya CEO Doron Gerstel said, “I am confident this integrated proposition will uniquely position Infosys as the services leader in the enterprise application services market.” <br /><br />He was later quoted in the company’s blog as saying, “You can expect to see an acceleration in the pace of Panaya product development and innovation, as well as an expanded global presence for our solutions. Our team of developers, customer engagement and support staff will remain fully operational and will continue to grow.”<br />Interacting with Deccan Herald during the Q3 results, Sikka had said that the game plan of Infosys is to reach out to the startup ecosystem in Silicon Valley, Tel Aviv, London, and Beijing.<br /> <br />“We have to emulate companies in other geographies which work on cutting-edge technologies in analytics, data mining, mobility, automation and artificial intelligence,” he had said. <br /><br />$500-m innovation fund<br /><br />During that time Sikka also announced the expansion of its Innovation Fund from the current $100 million to $500 million.<br /><br />Panaya, founded in 2006, has so far raised around $59 m in funding, the last being a $20 million Series E from Israel Growth Partners. Other investors in the privately-held company include Benchmark Capital, Battery Ventures, and Hasso Plattner Ventures. As of December 31, 2014, Infosys had cash reserves of $5 billion-plus. Infosys’ last big acquisition was the takeover of the Swiss consulting company Lodestone Holding for 330 million Swiss francs.<br />DH News Service <br /><br /></p>
<p>Infosys, India’s third largest IT firm, on Monday announced a definitive agreement to fully acquire Israel-based Panaya for an enterprise value of $200 million in an all-cash deal.<br /><br /></p>.<p>The transaction is expected to close before March 31, 2015, subject to customary closing conditions, Infosys said.<br /><br />Clients use Panaya’s tools called CloudQuality Suite to gauge and speed up changes in enterprise applications like SAP Enterprise Resource Planning (ERP) and Oracle E-Business Suite. Panaya claims its tool, available as a software as a service (SaaS) application, will help clients save up to half of their integration costs.<br /><br />Using big data analytics, the Panaya tool will tell businesses which of their in-house programs will break due to an upgrade or support package to the enterprise application. <br /><br />It will then provide a solution to the possible problems, and will even help calculate the budget and the number of people required. <br /><br />According to a to a leading security analyst, this acquisition “will further help the company to enhance its efficiency, penetrate the market, and improve its margins. So it is a right fit for Infosys”.<br /><br />Infosys CEO and Managing Director Vishal Sikka said, “The acquisition of Panaya is a key step in renewing and differentiating our service lines. This will help amplify the potential of our people, freeing us from the drudgery of many repetitive tasks, so we may focus more on the important, strategic challenges faced by our clients. At the same time, Panaya’s proven technology helps dramatically simplify the costs and complexities faced by businesses in managing their enterprise application landscapes.”<br /><br />Staff will remain: Gerstel<br /><br />Panaya CEO Doron Gerstel said, “I am confident this integrated proposition will uniquely position Infosys as the services leader in the enterprise application services market.” <br /><br />He was later quoted in the company’s blog as saying, “You can expect to see an acceleration in the pace of Panaya product development and innovation, as well as an expanded global presence for our solutions. Our team of developers, customer engagement and support staff will remain fully operational and will continue to grow.”<br />Interacting with Deccan Herald during the Q3 results, Sikka had said that the game plan of Infosys is to reach out to the startup ecosystem in Silicon Valley, Tel Aviv, London, and Beijing.<br /> <br />“We have to emulate companies in other geographies which work on cutting-edge technologies in analytics, data mining, mobility, automation and artificial intelligence,” he had said. <br /><br />$500-m innovation fund<br /><br />During that time Sikka also announced the expansion of its Innovation Fund from the current $100 million to $500 million.<br /><br />Panaya, founded in 2006, has so far raised around $59 m in funding, the last being a $20 million Series E from Israel Growth Partners. Other investors in the privately-held company include Benchmark Capital, Battery Ventures, and Hasso Plattner Ventures. As of December 31, 2014, Infosys had cash reserves of $5 billion-plus. Infosys’ last big acquisition was the takeover of the Swiss consulting company Lodestone Holding for 330 million Swiss francs.<br />DH News Service <br /><br /></p>
