IT major Infosys Monday announced it will acquire Zurich-based Lodestone Holding, a leading global management consultancy firm, in an all-cash deal to expand its presence in Europe.
The deal, valued at Swiss Franc 330 million (about Rs.1,932 crore), would be through by the end of next month, subject to customary closing conditions, Infosys said in a statement.
The acquisition "strengthens Infosys management consulting capabilities globally, expands presence in continental Europe adding more than 750 experienced consultants and 200 clients, deepens expertise across manufacturing, automotive and life sciences industries," it said.
It would make Infosys Consulting practice, focusing on SAP programmes, to become a $1 billion powerhouse, the statement said.
"A key plank of Infosys 3.0 strategy is to expand our consulting and systems integration business. This acquisition fits perfectly into that strategy," said Infosys CEO and managing director S.D. Shibulal.
Lodestone advises international companies on strategy and process optimization, and provides business transformation solutions enabled by SAP.
The acquisition would strengthen Infosys Consulting and Systems Integration capabilities, by bringing more than 850 employees, including 750 experienced SAP consultants to the company. Lodestone would add more than 200 clients across industries, including manufacturing, automotive and life sciences, to the Infosys pool of over 700 clients.
The statement said Infosys Consulting and Systems Integration business now had more than 30,000 consultants across 10 industry verticals and accounted for 31 percent of the company's revenue.
Besides Europe, the Lodestone acquisition would "significantly" enhance Infosys in emerging markets like Latin America and Asia Pacific, the statement said.