Infosys to buy European consultancy GuideVision to ramp up cloud biz
Photo Credit: Reuters

Infosys Ltd, India’s second-largest software services provider, said Monday it will acquire the Czech Republic-based enterprise service management consultancy GuideVision.

The all-cash deal is worth €30 million ($35.5 million or Rs 260.6 crore), including earn-outs and bonuses, Bengaluru-based Infosys said in a stock-exchange filing.

The company said the acquisition will augment its portfolio of cloud services and help it build capabilities relevant to the digital priorities of its clients. It will also strengthen its near-shore delivery presence in Europe.

GuideVision is one of the largest ServiceNow elite partners in the region and offers services relating to strategic advisory, consulting, implementations, training and support.

ServiceNow is a US-based software company focussing on helping organisations manage their digital workflows.

Prague-based GuideVision was set up in 2014 and has offices in several European countries including Germany and Finland. Its revenue rose to €12.9 million for 2019 from €10.4 million the previous year and €6.1 million for 2017.

“The combination of scalable and agile near-shore capabilities of GuideVision in Europe, and their unmatched delivery excellence, complements our own effort to help global enterprises navigate their next,” Infosys president Ravi Kumar said.

The acquisition, which is subject to customary closing conditions, is expected to be completed during the third quarter of the current financial year.

Shares of Infosys were trading almost 4% up at Rs 983 apiece around noon in a strong Mumbai market.

GuideVision is the third company that Infosys has agreed to acquire in 2020. Earlier this month, Infosys said it had signed a pact to acquire Kaleidoscope Animations Inc., a US-based company that designs and develops medical devices as well as consumer and industrial products, for up to $42 million.

In February, the IT major announced its second-biggest acquisition, buying the US-based Outbox Systems Inc. for $200 million along with an additional $50 million based on employee incentives and performance objectives.

Infosys reported a consolidated net profit of Rs 16,639 crore on net sales of Rs 90,791 crore for 2019-20.

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