By Freya Purnell
Global technology and consulting firm Infosys has announced an agreement to acquire Lodestone Holding AG, a global management consultancy firm, for CHF 333 million in cash.
Headquartered in Zurich, and with operations in Europe, North America, Latin America and Caribbean, Asia and Australia, Lodestone provides business transformation solutions enabled by SAP.
The acquisition of Lodestone is expected to strengthen Infosys Consulting and Systems Integration (C&SI) capabilities, by bringing more than 850 employees, including 750 SAP consultants to the company. Lodestone also brings more than 200 clients across industries including manufacturing, automotive and life sciences.
Following the acquisition, the combined Infosys Consulting practice focusing on SAP programs will deliver revenues of more than $1 billion, firmly establishing Infosys among the global leaders in SAP consulting.
The Infosys Consulting & Systems Integration business currently has more than 30,000 consultants across 10 industry verticals and accounts for 31 per cent of the company’s revenue. The Lodestone acquisition will significantly enhance its global presence, particularly in continental Europe and emerging markets like Latin America and Asia Pacific, while Lodestone’s clients will gain access to the scale and global reach of Infosys as well as capabilities across consulting, systems integration and outsourcing.
On the acquisition, S. D. Shibulal, CEO and managing director, Infosys said, “A key plank of our Infosys 3.0 strategy is to expand our Consulting & Systems Integration business. This acquisition fits perfectly into that strategy. Lodestone and Infosys share a culture of unwavering focus on nurturing and maintaining client trust. I look forward to welcoming Ronald, his experienced leadership team and Lodestone’s team of top–notch consultants to Infosys.”
Ronald Hafner, chairman and CEO, Lodestone said, “Our clients entrust us with their most important business and technology transformation initiatives. We are eager 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. This will enhance the momentum that Lodestone is already witnessing in the marketplace. A common passion for delivering client value will strengthen this partnership even further.”
The acquisition is expected to close by the end of October 2012.
