Nothing shady in Panaya deal: Infy

Infosys on Monday refuted a whistleblower’s allegation that it had bought Israeli firm Panaya at an inflated price.

Infosys favoured the software firm only because CEO Vishal Sikka was earlier connected with it, the anonymous whistleblower has complained to markets regulator Sebi.

“We categorically state that no member of the Infosys management team was involved in any prior investments in Panaya,” a statement from Infosys said. It dismissed the whistleblower’s complaint as “misleading and slanderous”.

Infosys acquired Panaya for $200 million in February 2015. By the whistleblower’s reckoning, Sikka unduly favoured it because he was earlier connected with it in his capacity as CTO of SAP, the whistleblower has said. Panaya helped automate SAP upgrades, and Hasso Plattner, former chairman of SAP, invested in Panaya.

Infosys on Monday said the management was well aware of the rationale for the acquisition, and Deutsche Bank had provided the valuation.

It is wrong to say the cash balance in Panaya came down from Rs 127 crore in 2014 to Rs 1.37 crore in 2015, it averred.

“These balances represent only one entity of Panaya. Panaya has four legal entities, Panaya Inc., Panaya Limited, Panaya GmBH and Panaya Japan. The financials for all of these entities are available on our website,” the company said.

Earlier in the day, Sikka wrote to his staff, describing the complaint as “an attack orchestrated by people who are hell-bent on harming the reputation of the company, and its employees.”