Hoping to salvage lost ground from competitors like Wipro, and boost productivity, Infosys has decided to acquire Panaya Inc, a US-based automation technology startup for $200 Mn.
Infosys hopes to apply Panaya’s cutting edge automation to several service lines through a software-as-a-service model, to reduce risks and costs and the time taken to bring services to the market.
“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,” Vishal Sikka, CEO of Infosys, said in a statement.
The Bangalore-based company, Infosys Ltd is an Indian multinational corporation that provides business consulting, information technology, software engineering and outsourcing services. Of late, it has been focusing on IP-related products, platforms and solutions (PPS) business as part of its proposed ‘Infosys 3.0’ strategy, which is mainly aimed at widening the focus and looking to move higher in the value chain.
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Powered by big data analytics and aggregating since 2008, Panaya, delivers insights that tells what will break, how to fix it and what to test. It helps companies improve and find smarter ways to perform day-to-day maintenance and major projects. More than 1,220 companies in 62 countries, including a third of the Fortune 500, use the Panaya Cloud Quality Suite to enhance and maintain their enterprise apps.
Many former Infosys bosses are currently backing startups. Co-founders SD Shibulal and Kris Gopalakrishnan have a venture fund, Axilor Ventures, which aims to invest up to $1 Mn in early-stage funding. Founder and former chairman NR Narayana Murthy’s family office runs Catamaran Ventures which has backed companies such as Hector Beverages and Wellspring Healthcare.
Another company co-founder NS Raghavan has a technology investment firm Ojas Ventures which has backed startups like internet marketing company Vizury and interactive technology developer TELiBrahma.
Infosys had, earlier pledged to invest $250 Mn (INR 1,500 crore) through an ‘Innovate in India’ fund in Indian startups, in the first such commitment by a software major.