Infosys buying Lodestone consultancy for $349.3M
NEW YORK (AP) — Infosys is buying managing consulting firm Lodestone Holding AG for 330 mill Swiss francs ($349.4 million) in order to strengthen its consulting business.
The company said Monday that the buyout will also bolster its presence in Europe, Latin America and the Asia Pacific region. It will add more than 750 consultants and 200 clients.
Lodestone is based in Zurich, Switzerland.
Infosys, which is based in India, says its consulting and systems integration business has more than 30,000 consultants and makes up 31 percent of its total revenue.
Vishal Agarwal of Jefferies & Co. said in a client note that the transaction should please investors, because it shows that Infosys is using its available cash to make strategic acquisitions. The deal also gives Infosys a better presence in new markets like China, Singapore and Brazil.
The analyst reaffirmed a "Buy" rating.
The deal is expected to close by the end of October.
U.S.-traded shares of Infosys Ltd. slipped 21cents to $45.45 in afternoon trading on Monday.