Infosys, one of India’s largest IT services firm, has agreed to spend $76 million to buy Fluido, a Salesforce consulting partner in the Nordics in Europe, the company said on Friday, marking the second acquisition under chief executive officer (CEO) Salil Parekh, who took over nine months ago.
Finland-based Fluido is a privately held firm that was founded in 2010. Infosys did not disclose the revenue of Fluido but said it expects to close the acquisition during October-December.
“Fluido startup will going to be one of the most advanced addition to the Infosys, bringing a unique combination of market presence, deep salesforce expertise, agile delivery and training, that combined with our existing capabilities will help companies reimagine and transform their businesses. This acquisition also aligns to our efforts to invest in local capabilities in the regions in which we operate,” said Ravi Kumar S, president and deputy chief operating officer of Infosys.
Bengaluru-based Infosys’s latest acquisition is significant for three reasons, according to analysts. First, Infosys through Fluido can expect to generate more business from clients in the Nordic region comprising Finland, Denmark, Sweden, Norway and Slovakia.
Second, the acquisition will help put the consulting arm back on the growth pedestal after more than two years of tepid performance. Finally, Infosys’s second acquisition after it spent $75million to buy WongDoody, the US-based ad agency in April, suggests that the company is not shying away especially after its three earlier failed acquisitions made under former CEO Vishal Sikka’s watch.
In 2015, under Sikka’s leadership, Infosys spent $370 million to acquire Panaya, Skava and Noah Consulting. Three years later, it decided to put both Panaya and Skava on the block, having already been forced to write down 59% of the $220 million acquisition of Israeli-automation firm, Panaya. Infosys has already shut down Noah Consulting, which it bought for $70 million, and transferred all the business to the parent company.
“WongDoody and now Fluido’s acquisitions show that Salil is going to acquire consulting and design firms, one of which also helps the company to scale up its presence in a geographic region that is seeing a lot more companies increase their spend on outsourcing,” said a Mumbai-based analyst at a domestic brokerage firm on condition of anonymity.
“It is heartening that Infosys has not been bogged down by its earlier failed acquisitions of Panaya, Skava and reflects the new CEO’s desire to put an end to the past,” said in a statement with a Mumbai-based analyst at a foreign brokerage, also requesting anonymity.