IT major Infosys to acquire Simplus in $250M deal
IT major Infosys said on Monday that it will acquire Simplus, one of the fastest growing Salesforce Platinum Partners in the US and Australia, in an up to $250 million deal.
According to a regulatory filing, the cost of acquisition is "$200 million including contingent consideration to be paid for the acquisition of shares subject to closing adjustments".
In addition, there are employee incentives and retention payments amounting up to $50 million on meeting certain performance conditions over three years, it added.
Simplus is majority-owned by the institutional investors, founders and key employees, with Salesforce Ventures having a minority stake. Its revenue stood at $67.1 million for the fiscal year ending January 31, 2020.
"This acquisition, coupled with the acquisition of Fluido announced in September 2018, further elevates Infosys' position as an end-to-end Salesforce enterprise cloud solutions and services provider, offering clients unparalleled capabilities for cloud-first digital transformation," Infosys said in a statement.
The acquisition will bring to Infosys the globally recognised Salesforce expertise, industry knowledge, solution assets, deep ecosystem relationships and a broad clientele across industries including high-tech, financial services, retail, healthcare, life sciences and manufacturing, it added.
The acquisition is expected to close during the fourth quarter of the 2020 fiscal, subject to customary closing conditions.
"This acquisition is key to staying relevant to the digital priorities of our clients and demonstrates our commitment to the Salesforce ecosystem," Infosys Chief Operating Officer Pravin Rao said.
Simplus has offices across North America, Sydney, Melbourne, London, and a large delivery centre in Manila.
"We have viewed this partnership from a culture-first lens from the beginning, and we believe that the alignment of our company values, and the preservation of our company DNA will allow us to accelerate growth," Ryan Westwood, CEO and co-founder of Simplus said.
(Edited by Evelyn Ratnakumar)