Infosys Willing to Spend $700 Million on Deal, Co-Chair Says
Infosys Ltd. is willing to spend up to $700 million on an acquisition target, Kris Gopalakrishnan, the company’s co-chairman said at an American Chamber of Commerce event in Shanghai today.
On acquisitions:
“We have an active team looking. We sometimes have discussions with companies.”
“We are looking at acquisitions in three different areas. One is a geography-based acquisition. In certain countries, we want to grow faster and one way is by acquiring a small company.
‘‘The second area we are looking for is companies which have platforms which we can then leverage and sell to other clients. With our size and reach, we can cross sell to other clients. The third area we look for is companies that focus on specific industries. We want to grow our health care practice faster.’’
On the effects of the European financial crisis:
‘‘Europe is growing slower than the U.S. for us. The European financial crisis is impacting our growth in Europe.’’
On trends in IT services next year:
‘‘A lot of companies are investing in growing business and creating products for emerging markets. The second trend we see is mobile. In developing countries, the penetration of mobile is significantly higher than PC or the Internet. If you are a business today, you need to reach out to the consumer through mobile technology. Mobile commerce, mobile cash. Bringing mobility into your corporate IT is a key priority for businesses. With mobility, cloud will also become very important. So cloud technologies will also take off.
‘‘We have a practice around mobility, practice around cloud, we have a practice around sustainability and also focusing a lot more of our own business into emerging markets to support our global clients.’’
To contact the reporter on this story: Liza Lin in Shanghai at llin15@bloomberg.net
To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net
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