December 21, 2011: Infosys BPO Ltd, the BPO arm of Infosys Ltd, has announced the acquisition of Portland Group Ltd, a strategic sourcing and category management services vendor headquartered in Australia. The acquisition will involve buying out all the outstanding share capital in the company. It is expected that the process of acquisition will be over by January 2012, which is subject to fulfillment of certain closing conditions.
The Portland Group was started in the year 1999 and currently serves many leading ASX 200 companies in the country. With offices in Melbourne, Perth, and Brisbane, the company is based in Sydney. During the fiscal year ending June 2011, the company had generated revenues of AU$ 31.3 million. Currently there are 113 employees working with the company.
According to highly placed sources in Infosys BPO, they are extremely happy to have an exceptional team of domain experts in the Portland Group to join them. It is expected that the acquisition will significantly enhance the competencies and domain expertise of Infosys BPO in their Sourcing and Procurement activities. More over in a vibrant marketplace like Australia, the move will bolster the top end of the service offering in the strategic sourcing and category management functions. With the acquisition the company expects to improve the competitiveness, extend of offerings and the global reach for the clients.
The Chief Executive Officer of Portland Group, Gavin Solsky says that the union of Portland Group and Infosys will deliver the clients with highly promising services that is not present in the sourcing and procurement services sector in Australia. He added that this combination will help them to provide their customers with highly integrated and globally competitive service to deliver procurement benefits in the most effective and efficient manner possible.
The competencies of the Portland group are expected to enhance the capabilities of Infosys BPO, which will help them to develop a service that will influence the business of the customer in a positive manner. The deal is expected to be worth AU$ 37 million, which is subject to fulfillment of requirements.
The Business Process Outsourcing arm of Infosys was started in 2002. They are into end to end outsourcing and help customers to achieve their objectives of outsourcing at reduced cost and through productivity improvements. The firm has employed 20,620 employees as of now and has generated revenue of USD 426 million during the financial year 2010-2011.