India's second-largest IT outsourcing company Bangalore-based Infosys, announced on Monday that it is on verge of acquiring an Israeli automation-technology startup named Panaya in a $200 million deal, creating the first major presence in Israel by an Indian tech company.
As per deal, Infosys will pay $200 million in cash for the company and get another $30 million in cash Panaya is holding. Infosys will retain all or more most of Panaya’s approximately 160 employees. Most of them work at Panaya’s research and development center, in the Tel Aviv suburb of Ra’anana, which will become Infosys Israel.
The transaction is expected to close before March 31, 2015, subject to customary closing conditions.
This acquisition reflects Infosys' execution of its Renew and New strategy to enhance the competitiveness and productivity of current service lines by leveraging automation, innovation and artificial intelligence.
Panaya, which is based in New Jersey, has raised $58 million since it was founded in 2006. It backers include the U.S. venture capital funds Benchmark Capital and Battery Ventures, Germany’s Hasso Plattner Venture, Lichtenstein-based Tamares and the Israeli funds Gemini and IGP.
Commenting on the acquisition, Dr. Vishal Sikka, CEO and Managing Director of Infosys said, “The acquisition of Panaya is a key step in renewing and differentiating our service lines. This will help amplify the potential of our people, freeing us from the drudgery of many repetitive tasks, so we may focus more on the important, strategic challenges faced by our clients. At the same time, Panaya’s proven technology helps dramatically simplify the costs and complexities faced by businesses in managing their enterprise application landscapes.”
Mr. Doron Gerstel, CEO, Panaya, Inc. said, “We are excited about leveraging Infosys’ global reach, service footprint and broad customer base to deliver compelling, simplifying, value to clients. I am confident this integrated proposition will uniquely position Infosys as the services leader in the enterprise application services market.”
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