IT consultancy and services provider Infosys has announced that it will be acquiring enterprise resource planning (ERP) software company Panaya for $200 million.
According to Infosys CEO and managing director Vishal Sikka, the acquisition will see the company use the automation of Panaya's CloudQuality software-as-a-service (SaaS) suite to enhance its current service lines."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," he said.
"At the same time, Panaya's proven technology helps dramatically simplify the costs and complexities faced by businesses in managing their enterprise application landscapes."
The transaction is expected to close before March 31, 2015, subject to customary closing conditions.
The acquisition reflects Sikka's commentary during the company's third-quarter earnings, where he said the company will focus efforts in key categories including cloud, big data, artificial intelligence, omni-channel retailing, and nex-gen payment systems.
Infosys reported solid third-quarter results, achieving earnings of $522 million on revenue of $2.22 billion for the three months ended December 31, 2014. Infosys' sales were also up 5.6 percent for the third quarter compared to a year ago.