The Hindu Business Line : Infy scouting for mid-sized buys to expand consulting

New Delhi, July 11 Even as the company remained mum on recent market speculation that it was mulling a bid for Paris-based Capgemini, India’s second largest software exporter Infosys Technologies today said it is actively scouting for acquisition of mid-sized firms to expand its consulting practice or presence in new geographies.

“We are looking for mid-sized companies. It makes sense. Acquisition is core to our overall strategy. Acquisition could help us expand the consulting business or penetrate new geographies, where our presence is currently low,” Mr S.D. Shibulal, Chief Operating Officer, and member of board of Infosys Technologies told Business Line.

Biggest Gainer

He said Infosys — which had acquired Australia’s Expert Information Services (for $22.9 million) — had followed-up the takeover with a successful integration. “In acquisition, the challenge is to find the right company and the company also should be willing to be acquired,” he said.

Asked about the market rumours, last month, suggesting Infosys’s interest in Capgemini, Mr Shibulal merely said: “We do not react to rumours.”

It may be recalled that on June 28, the shares of Capgemini rose 3.7 per cent as traders cited talk that Infosys Technologies could be interested in bidding for Europe’s largest IT services group. The stock had gained 3.5 per cent to a two-week high of €53.19 by 12.20 GMT, making it the biggest gainer on France’s CAC-40 benchmark index.

Meanwhile, Infosys has clinched three deals of over $50 million each, during the first quarter of FY08. “We have bagged three large deals, of which two were in the services space. We are negotiating on a dozen large deals that cut across verticals like high tech manufacturing, telecom, services amongst others. The gestation period for these talks range between 5 and 9 months,” he said.

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