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Infosys has formed a joint venture with Temasek, under which it will take a 60 per cent stake in Trusted Source, a wholly-owned subsidiary of the Singapore-based investment giant, for ₹62.6 crore.
According to the deal, Infosys will pump in the funds in Trusted Source by March 2019. The investment does not include working capital, cash and net debt, the company said in a statement.
Trusted Source, headquartered in Singapore, delivers IT services to Temasek and a number of other clients. It has around 200 employees. Post deal, it will work along with Infosys staff, the company said in a statement.
Temasek has a network of international offices in 11 locations in Asia, the Americas and Europe and managed a $235-billion portfolio as of March this year, with two-thirds of the underlying exposure to Singapore and the rest of Asia.
Both the companies named Shveta Arora, Infosys’ Vice-President and Regional Head in South-East Asia, as CEO of the new venture.
Digital transformation
The joint venture will support Temasek's digital transformational journey and manage a cloud migration programme which will host the Singapore-based investment company’s applications.
Analysts like Urmil Shah of IDBI Capital pointed out that while currently Temasek is Infosys' main client, the fact that these solutions can be provided for other companies is a positive development.
Infosys stock went up by less than 1 per cent to close at ₹733 on the BSE.
Other joint ventures
Infosys has entered into similar joint ventures in the past. In September 2016, it tied up with Saudi Prerogative Company (SPC) to conduct IT services for customers located in Saudi Arabia. Infosys holds 70 per cent in the joint venture, and SPC the rest.
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