NEW DELHI -- India's second-largest software services firm Infosys will acquire US-based automation technology company Panaya for an enterprise value of USD 200 million (over Rs 1,200 crore).
The all-cash deal is part of Infosys' 'Renew and New' strategy to enhance the competitiveness and productivity of current service lines by leveraging automation, innovation and artificial intelligence, Infosys said in a statement.
The acquisition of Panaya is a key step in renewing and differentiating Infosys' service lines, its CEO and Managing Director Vishal Sikka said. "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," he added.
Panaya's CloudQuality suite will allow Infosys to bring automation to its service lines through an agile software as a service (SaaS) model, help mitigate risk, reduce costs and shorten time to market for clients. The transaction is expected to close before March 31, 2015, subject to customary closing conditions.
The Bangalore-based firm has been aggressively scouting for acquisitions after Sikka was brought on board last year.
Sikka had said the company is open to taking over innovative companies in areas like automation and artificial intelligence but is not interested in 'yesterdays' companies. At the end of December 2014 quarter, Infosys had cash and cash equivalents of USD 5.65 billion (Rs 34,873 crore).
So far, Infosys has made no acquisitions under Sikka since he took over the helm of affairs at the company in August last year.
In January 2012, Infosys BPO acquired Portland Group, a strategic sourcing and category management services provider based in Australia for USD 41 million. In October of same year, it acquired Zurich-headquartered Lodestone Holding for a cash consideration of USD 219 million and an additional consideration of up to USD 112 million.