Infosys to acquire management consultancy firm Lodestone

IT major Infosys Monday announced it will acquireZurich-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.1,932crore), would be through by the end of next month, subject to customary closingconditions, Infosys said in a statement.

The acquisition "strengthens Infosys managementconsulting capabilities globally, expands presence in continental Europe addingmore than 750 experienced consultants and 200 clients, deepens expertise acrossmanufacturing, automotive and life sciences industries," it said.

It would make Infosys Consulting practice, focusing on SAPprogrammes, to become a $1 billion powerhouse, the statement said.

"A key plank of Infosys 3.0 strategy is to expand ourconsulting and systems integration business. This acquisition fits perfectlyinto that strategy," said Infosys CEO and managing director S.D. Shibulal.

Lodestone advises international companies on strategy andprocess optimization, and provides business transformation solutions enabled bySAP.

The acquisition would strengthen Infosys Consulting andSystems Integration capabilities, by bringing more than 850 employees,including 750 experienced SAP consultants to the company. Lodestone would addmore than 200 clients across industries, including manufacturing, automotiveand life sciences, to the Infosys pool of over 700 clients.

The statement said Infosys Consulting and SystemsIntegration business now had more than 30,000 consultants across 10 industryverticals and accounted for 31 percent of the company's revenue.

Besides Europe, the Lodestone acquisition would"significantly" enhance Infosys in emerging markets like LatinAmerica and Asia Pacific, the statement said.

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