Zurich and Bangalore: Indian IT consultancy Infosys has strengthened its European presence with the acquisition of Lodestone, the Swiss management consulting firm and SAP specialist.
- Deal strengthens Infosys management consulting capabilities globally
- Expands presence in continental Europe adding more than 750 experienced consultants and 200 clients
- Deepens expertise across Manufacturing, Automotive and Life Sciences industries
- Infosys Consulting practice focusing on SAP programs to become a $1 Billion powerhouse
Infosys announced a definitive agreement to acquire Lodestone Holding AG this week, for an aggregate enterprise value of 330 Million Swiss Francs ($352 million) in cash.
Lodestone is headquartered in Zurich and advises international companies on strategy and process optimization, and provides business transformation solutions enabled by SAP.
Infosys says the combination of the breadth of its own capabilities with Lodestone's experience of driving transformational change, will provide clients across the two companies with "a world-class team to accelerate transformation and innovation led growth."
Upon completion, the acquisition of Lodestone will strengthen Infosys Consulting and Systems Integration (C&SI) capabilities, by bringing more than 850 employees, including 750 experienced SAP consultants to the company.
Lodestone will bring with it more than 200 clients across industries including Manufacturing, Automotive and Life Sciences; Infosys itself has a pool of over 700 clients worldwide.
Post-acquisition, the combined Consulting practice focusing on SAP programs will deliver revenues of more than $1 Billion, making Infosys a global leader in SAP consulting.
Infosys Consulting & Systems Integration business today, has more than 30,000 consultants across 10 industry verticals and accounts for 31% of the company's revenue.
The Lodestone acquisition will significantly enhance its global presence, particularly in continental Europe and emerging markets like Latin America and Asia Pacific.
Lodestone's clients will get ready access to the scale and global reach of Infosys, in addition to a broad spectrum of capabilities across consulting, systems integration and outsourcing.
S. D. Shibulal, CEO & Managing Director, Infosys said, "A key plank of our Infosys 3.0 strategy is to expand our Consulting & Systems Integration business.
"This acquisition fits perfectly into that strategy. Lodestone and Infosys share a culture of unwavering focus on nurturing and maintaining client trust. I look forward to welcoming Ronald (Hafner), his experienced leadership team and Lodestone's team of top-notch consultants to Infosys."
Ronald Hafner, Chairman and CEO, Lodestone added, "Our clients entrust us with their most important business and technology transformation initiatives. We are eager to leverage the widely acknowledged global reach of Infosys and its leadership in the consulting and technology arena to deliver greater value to our clients.
"This will enhance the momentum that Lodestone is already witnessing in the marketplace. A common passion for delivering client value will strengthen this partnership even further."
The transaction is expected to close by the end of October 2012, subject to the usual conditions.