September 15, 2011 – Infosys looking forward to achieve another milestone; the Indian IT giant Infosys is planning to acquire Thomson Reuters.
According to the official authorities of Infosys the deal will be for $700-750 million which is also expected to be one of the biggest acquisitions by an Indian company in the year. It was Infosys which took the initiative step and approached Thomson Reuters first through an email.
Thomson Reuters is a global leader which provides innovative solutions to many companies. Thomson Reuters is basically into analytics solutions and has extended their service to satisfied customers almost everywhere across the globe which also includes government agencies. Moreover the company also deals with health care business.
Even though Infosys has made acquisitions in the past, this is the first time they are into such a huge deal. Earlier the company has acquired Citicorp for 115.13 million US dollars which was resulted as a very good deal for the company. Moreover in the year 2008 and 2009 Infosys went for small deals and acquisitions which ended up in rapid growth for the company in the long run.
Chairman of Infosys, K V Kamath told that Infosys has grown their root deep into banking services. We are a company with excellent experience in banking services and financial & accounting services. It is time for the company to grow business beyond the boundaries of banking and financial services. The latest acquisition strategy is an initial step to diversify the business. We are also planning to adopt more acquisition strategies in the near future to make the company stronger in the overseas. The well skilled workforce and experienced employees with Thomson Reuters is an additional asset for Infosys to achieve the objectives and flourish the business.
Health care business has huge potential and large scope for business. Companies such as cognizant have generated huge revenue in the past years from this particular sector. The revenue generated by cognizant in the health care business is calculated to be above 30 % of the total revenue in the current year. Contribution made by health care related business to TCS is also remarkable. Infosys is looking forwards to follow the path of other leading IT and BPO players such as TCS and Cognizant.
As far as Thomson Reuters is concerned it is not just the health care business they are about to sell. The company is also planning to sell other two divisions which include broker dealers and hedge funds. It is expected that the latest acquisition will make huge contribution to the revenue generation by Business Process Outsourcing (BPO) division of Infosys.