Infosys ties up with Hitachi to tap Japanese market

Infosys will acquire 81 per cent of the shareholding in Hitachi Procurement Service Co Ltd, its fully owned subsidiary.
In a separate filing to BSE, Infosys also said that it will announce results for the December quarter on January 11, 2019 (File Photo | Reuters)
In a separate filing to BSE, Infosys also said that it will announce results for the December quarter on January 11, 2019 (File Photo | Reuters)

BENGALURU : Infosys, India’s second largest IT services company, on Friday announced the formation of a joint venture with Hitachi Ltd, Panasonic Corporation and Pasona Inc, strategically enhancing the company’s presence in Japan. Infosys will acquire 81 per cent of the shareholding in Hitachi Procurement Service Co Ltd, its fully owned subsidiary.

Japan is a strategic market for the IT services major, which believes that the transaction will help it to build a local presence in the region to service its clients. “The entity formed by complementary, iconic companies coming together, will accelerate business process transformation leveraging digital procurement platforms for the local and global needs of Japanese corporations,” the company said in a regulatory filing.

As part of the transaction, Infosys Consulting Pte Ltd will acquire an 81 per cent stake in HIPUS from Hitachi by way of an acquisition of existing shares for 2,762 million Japanese Yen (about `174 crore), subject to closing adjustments. Hitachi will transfer two per cent each to Panasonic and Pasona, and will hold the remaining 15 per cent.

The transaction is expected to close on or before April 1, 2019, subject to customary closing conditions. Presently, Hitachi Procurement Service Co Ltd handles indirect materials purchasing functions for the Hitachi Group. “This joint venture will help Japanese corporations transform their procurement processes using next-generation digital platforms, as we bring together the combined power of deep procurement expertise, technology, global expertise, and local skills,” said Infosys president S Ravi Kumar, adding, “We are very excited to partner with the Hitachi group, Panasonic Corporation and Pasona, (who are) established conglomerates in this market.”

Infosys will bring its global expertise in procurement processes, consulting, analytics and digital technologies such as AI and Robotic Process Automation to the venture. In a separate filing to BSE, Infosys also said that it will announce results for the December quarter on January 11, 2019.

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