Infosys to acquire US-based Simplus for $250 million to step up cloud biz

BENGALURU:  Bengaluru-based IT services major Infosys on Tuesday said it has signed a definitive agreement to acquire US-headquartered Simplus, a major Salesforce platinum partner, in a bid to strengthen its cloud business.

The acquisition, expected to be complete within a month, will incur a cost of up to $250 million, Infosys said in a filing with stock exchanges.“…$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,” Infosys said.

This is the second such acquisition of a cloud-based enterprise by Infosys, signalling that the latter is riding high on the digital transformation wave.

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, it said.

Simplus uses cloud-based solutions to serve companies in various industries such as high-tech, healthcare, retail and life sciences. 

“The acquisition reaffirms our continuous endeavour to strengthen our strategy of scaling our Agile Digital and cloud-first digital transformation capabilities. This acquisition is key to staying relevant to the digital priorities of our clients and demonstrates our commitment to the Salesforce ecosystem. The strategic combination of scalable and agile global delivery capabilities of Simplus complements our effort to help global enterprises to transform their businesses,” said Pravin Rao, chief operating officer, Infosys.