Infosys will buy companies in data analytics and SAAS segment, CEO Salil Parekh told the plan
India’s second largest information technology (IT) services company Infosys is preparing to acquire more companies after two acquisitions this year. Infosys Chief Executive Officer (CEO) Salil Parekh said the company is keen on making acquisitions in areas like data analytics, software as a service (SAAS) and may also consider some geographies in Europe and the US. Asked if more acquisitions could be of similar scale to the technology sector, Parekh said, “Absolutely, I think we will look at similar size in terms of scale and given our structure we will be looking at some of these.” “Can make some acquisitions.”
2 acquisitions made this year
The company has made acquisitions worth 45 crore euros in the technology sector. Infosys in January announced a definitive agreement to acquire 100 per cent equity shares in India-headquartered semiconductor design services company Insemi Technology Services. The total value of the deal was up to Rs 280 crore (which includes earn-out, management incentives and retention bonuses). The company made another major acquisition three months later. Wholly owned subsidiary Infosys Germany in April entered into a definitive agreement to acquire 100 per cent equity shares in In-Tech Holding for an amount of up to EUR 450 million (approximately Rs 4,045 crore). In-Tech Holding is a leading provider of engineering research and development services headquartered in Germany.
and will acquire
Parekh said, “We already have a very good business in engineering services within Infosys and then we made two acquisitions, both in engineering services, one on the semiconductor side and one on the automotive side. It’s a very strong business and we feel very good about expanding into that area. He said Infosys is eyeing more acquisitions and the company is evaluating several companies.
Customer interest in generative AI
Parekh said that customers have keen interest in generative artificial intelligence (AI) and there is huge demand for it in the company too. He also said that he does not anticipate any layoffs in his company due to these new age technologies. Regarding the GST tax demand of $3.9 billion, Parekh said that Infosys has already informed about this and has also made disclosures in the information given to the stock market. He said he had no new information to share. Asked whether the company would make provisions for the demand in view of taxes outstanding for several years, he said, “We do not have any new information. The situation is similar to what we shared a few days ago.
He said there has been a very good response from customers on generative AI and compared it to the trend seen for digital and cloud technologies in the past. Parekh believes that the adoption of generative AI will increase over time as enterprises realize the benefits and business outcomes it brings. “So we think it will accelerate over time, but we’ll wait and see how it evolves,” he said. This is like when we started with digital or cloud a few years ago. Parekh said that if these will benefit the customers, then more and more people will adopt it.
