Infosys Eyes Big Moves: CEO Salil Parekh Hints at Major Acquisitions in Data Analytics and SaaS

Infosys, India’s second-largest IT services firm, is on the lookout for more acquisitions. After two significant purchases earlier this year, the company is now focusing on areas like data analytics and Software as a Service (SaaS), according to CEO Salil Parekh.

Interest in European and US Markets

Infosys is considering acquisitions in Europe and the US. Parekh mentioned that future deals could be on the same scale as the company’s recent €450 million purchase in the tech sector.

Recent Acquisitions Strengthen Engineering Services

Earlier this year, Infosys acquired In Semi Technology Services, a semiconductor design services company, for ₹280 crore. This was followed by a larger acquisition in April when Infosys Germany bought in-tech Holding, a German engineering R&D services provider, for €450 million (around ₹4,045 crore). These acquisitions have bolstered Infosys’ engineering services, particularly in the semiconductor and automotive sectors.

Focus on Strategic Fit and Integration

While Infosys is eager to expand its portfolio, Parekh emphasized that any potential acquisition would depend on strategic fit, financial costs, cultural compatibility, and ease of integration. He noted that ongoing discussions may or may not lead to finalized deals.

Uncertain Timeline for Future Acquisitions

Regarding the possibility of closing more acquisitions within the current fiscal year, Parekh was cautious. He acknowledged that while several opportunities are under evaluation, it is difficult to predict when or if these deals will be completed.

Indian M&A Activity Overview

According to the Grant Thornton Bharat Dealtracker Q2 2024 report, India saw 501 deals worth USD 21.4 billion in the second quarter of 2024. However, the value of merger and acquisition (M&A) deals declined by 50 percent compared to previous quarters due to the absence of large-scale transactions. Despite this, domestic deals showed growth, while cross-border deals declined significantly in both volume and value.