Infosys Buys Skava As Part of New Strategy
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Infosys has completed the acquisition of Kallidus Inc., the holding group behind Skava, and its affiliate, a leading provider of digital experience solutions, including mobile commerce and in-store shopping experiences to large retail clients for $120 million. The acquisition is in accordance with the terms set out in the agreement announced on April 24, 2015. The acquisition of Skava is part of Infosys’ strategy to help clients bring new digital experiences to their customers through IP-led technology offerings, new automation tools and unparalleled skill and expertise in these new emerging areas.
Infosys is a global leader in consulting, technology and outsourcing solutions. The company enables clients, in more than 30 countries, to stay a step ahead of emerging business trends and outperform the competition.
On 24 April, Infosys also said it agreed to buy Kallidus Inc and an affiliate, which provide digital services such as mobile commerce for retail clients, for $120 million.
Bangalore-based Infosys, once seen as the bellwether of India's about $150 billion IT services industry, has in recent years struggled to innovate and retain market share due to a staff exodus that impacted its ability to win lucrative deals.
Under Chief Executive Vishal Sikka, the company has been making big bets on automation and other new technology like artificial intelligence and cloud-based services to regain some lost ground from rivals.
For the year ending March 2016, Infosys said it expects revenue growth of 10 per cent to 12 per ent. Revenue grew 6.4 per cent in the last fiscal year to 533.19 billion rupees ($8.39 billion).
"We see the industry going through a fundamental and structural transition. Despite being a challenging quarter, I am encouraged by the early successes in executing our Renew-New strategy, on a foundation of learning," Sikka said.
Pricing continues to be under pressure due to increasing commoditization in the traditional outsourcing business, requiring the company to ramp up productivity through automation, Chief Operating Officer U.B. Pravin Rao said in a statement.
The company reported a 3.5 per cent growth in its consolidated net profit for the quarter ended March 31.
Skava marks Infosys's second largest acquisition this year, after the company bought Israel-based automation solutions startup Panaya earlier this year for $200 million.