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Infosys to acquire automation technology provider Panaya for $200 mn

In line with the strategy laid out by its CEO and MD Vishal Sikka, Infosys on Monday said that it has signed a definite agreement to acquire Panaya, Inc., a provider of automation technology for $ 200 million (around Rs 1,244 crore), in an all cash transaction. 

Founded in 2006, the California-headquartered company provides automation technology for large scale enterprise software management.

After assuming charge as the CEO and MD of Infosys in August last year, Sikka has time and again stated that the Bengaluru-based IT services company is looking at acquiring “technologies for tomorrow” in areas of automation, artificial intelligence, machine learning, big data and analytics. 

The acquisition of Panaya reflects the company’s execution of its “Renew” and “New” strategy to enhance the competitiveness and productivity of current service lines, the company said in a statement.

“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,” said Sikka in a statement. 

“At the same time, Panaya’s proven technology helps dramatically simplify the costs and complexities faced by businesses in managing their enterprise application landscapes,” he added.

Unlike its other industry peers such as Cognizant and HCL Technologies, Infosys is not perceived as an aggressive player in the mergers & acquisitions (M&A) space despite sitting on huge cash reserves. Since its inception, it has carried out only five acquisitions, the largest being Lodestone, a Switzerland-based management consultancy firm it had acquired in September 2012 for about $ 345 million (Rs 1,930 crore). Two of the acquisitions — McCamish ($ 58 million) and Portland Group (A$ 34 million) — were in the business process outsourcing space.

“We are excited about leveraging Infosys’ global reach, service footprint and broad customer base to deliver compelling, simplifying, value to clients. I am confident this integrated proposition will uniquely position Infosys as the services leader in the enterprise application services market,” DoronGerstel, CEO of Panaya, Inc. said.

The transaction is expected to close before March 31, 2015, subject to customary closing conditions.

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