Infosys has announced that it has entered into an agreement to fully acquire Panaya Inc, a leading provider of automation technology for large-scale software management.
The all cash-deal has an enterprise value of $200 million, the company has said in a filing to the BSE.
The transaction is expected to close before March 31, 2015, subject to customary closing conditions.
The acquisition is in keeping with Infosys' execution of its ‘Renew and New’ strategy to enhance the competitiveness and productivity of current service lines by leveraging automation, innovation and artificial intelligence.
“The acquisition of Panaya is a key step in renewing and differentiating our service lines. This will free us from the drudgery of many repetitive tasks so we may focus on the important, strategic challenges faced by our clients,” Vishal Sikka, CEO and MD, Infosys, said.
Panaya’s technology helps dramatically simplify costs and complexities faced by businesses in managing their enterprise application landscapes he added.
This acquisition follows close on the heels of the company’s $15-million investment in an animation technology spin-off of California headquartered movie animation company, DreamWorks. While the $15 million was invested from Infosys’ $500-million innovation investment fund which was announced last year and increased five-fold last month, it is not clear whether the Panaya acquisition is a part of this innovation fund.
Panaya's CloudQuality(tm) suite uniquely positions Infosys to bring automation to several of its service lines via an agile SaaS (Software as a Service) model, and helps mitigate risk, reduce costs and shorten time to market for clients.
Doron Gerstel, CEO, Panaya, Inc. said, "We are excited about leveraging Infosys' global reach, service footprint and broad customer base to deliver compelling, simplifying, value to clients. I am confident this integrated proposition will uniquely position Infosys as the services leader in the enterprise application services market."