Infosys Ltd, India's second-largest software services exporter, is forming a joint venture with Singapore state investment firm Temasek Holdings as it looks to boost its Southeast Asia operations and strengthen its skills in emerging technologies such as artificial intelligence.
The Indian company will take a 60% stake in Singapore-based Trusted Source Pte Ltd while Temasek will hold the remaining, Infosys said in a statement on Friday. Trusted Source is currently a wholly owned unit of Temasek that delivers IT services to the investment firm and other clients.
Infosys is picking up the stake for 12 million Singapore dollars ($8.7 million), excluding adjustments for working capital, cash and net debt on closing. The deal is likely to close before the end of March 2019, the company said.
The joint venture will provide technology solutions for customers in Southeast Asia across cloud, data analytics, cybersecurity, digital experiences, AI and automation. The entity will integrate teams from Infosys and the operations of Trusted Source.
“We will leverage our digital skills, learning capabilities and transformation experience to help enhance operations across Temasek’s global business. The JV will accelerate our efforts in the region, enhancing our existing presence, as we help clients navigate the next journey in their business transformation,” said Mohit Joshi, president at Infosys.
The joint venture will support Temasek’s digital transformation efforts, managing a cloud migration programme that will enable it to host its applications on a cloud platform.
The companies have named Shveta Arora, vice president at Infosys, as chief executive of the joint venture. It will have more than 200 employees and contractors from Trusted Source, in addition to Infosys staff who will join over time.
Infosys has either made investments or acquired several overseas companies over the past few years to boost its capabilities in digital technologies and other new-age segments. These include investments in US-based startups Trifacta Inc., Waterline Data Science Inc. and WHOOP Inc., and Israeli startup CloudEndure. Its acquisitions include deals to purchase Noah Consulting LLC for $70 million, m-commerce enabler Kallidus Inc for $120 million and automation technology firm Panaya Inc for $200 million.
Meanwhile, the deal adds to the growing list of Temasek's India-related transactions. Temasek, which managed a portfolio of S$308 billion ($235 billion) as on 31 March, has stepped on the gas in India this year and struck several deals.
On Thursday, for instance, Temasek committed $400 million (Rs 2,750 crore) to the National Investment and Infrastructure Fund (NIIF). It has also backed Ola founders to acquire a stake in the cab-hailing firm.
Temasek's other India bets this year include investments in AU Small Finance Bank Ltd, digital payments company Pine Labs and online insurance selling platform PolicyBazaar.