Infosys to acquire Swiss firm Lodestone for Rs 1,932 cr
Home » » Infosys to acquire Swiss firm Lodestone for Rs 1,932 cr

Infosys to acquire Swiss firm Lodestone for Rs 1,932 cr

Coimbatore: Infosys Ltd has announced the acquisition of Lodestone Holding AG, a management consultancy firm based in Zurich, for an aggregate enterprise value of CHF 330 million in cash (about Rs 1,932 crore).
Infosys to acquire Swiss firm Lodestone for Rs 1,932 cr

Infosys believes that it would become a global consulting powerhouse since post-acquisition, the cumulative consulting practice focusing on SAP programmes would bring in a revenue of more than $1 billion, "firmly establishing Infosys among the global leaders in SAP consulting".

However, the announcement did not have any significant impact on the share price of Infosys. The stock gained Rs 29.05 to trade at Rs 2,524.95 in the BSE with a trading volume of about 23,500 shares about 10 minutes after trading began this morning.

Lodestone is engaged in advising international companies on "strategy and process optimisation, and provides business transformation solutions enabled by SAP", Infosys said in a communication to the stock exchanges today.

Infosys believes that the capability of Infosys and Lodestone's strong experience of "driving transformational change'' would offer to its clients a "world-class team to accelerate transformation and innovation-led growth."

Once completed, the acquisition of Lodestone would boost Infosys' Consulting and Systems Integration (C&SI) capabilities as it would bring more than 850 employees, including 750 experienced SAP consultants and more than 200 clients across a wide spectrum of industries such as manufacturing, automotive and life sciences. Infosys itself has more than 700 clients.

Infosys said that its Consulting & Systems Integration business has more than 30,000 consultants across 10 industry verticals and accounts for 31 per cent of its revenue. Lodestone acquisition will help boost its global presence, especially in Europe and emerging markets such as Latin America and Asia-Pacific.

S. D. Shibulal, CEO & Managing Director, Infosys, described the acquisition as part of Infosys' strategy to expand its Consulting & Systems Integration business.

Ronald Hafner, Chairman and CEO, Lodestone, expressing eagerness to "leverage the widely acknowledged global reach of Infosys and its leadership in the consulting and technology arena to deliver greater value to our clients'', said the decision would "enhance the momentum that Lodestone is already witnessing in the marketplace''.

The transaction is expected to close by the end of October.
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