India's Infosys open to larger acquisitions: CFO

Reuters News
Posted: Sep 04, 2012 9:38 AM
India's Infosys open to larger acquisitions: CFO

By Harichandan Arakali and Tony Munroe

BANGALORE (Reuters) - Indian IT outsourcer Infosys Ltd, which has long said it's comfort size for acquisitions is up to 10 percent of its own revenue, is open to bigger deals given the right opportunity, a top executive said.

"Whatever size it is, if it makes strategic sense, if we feel we can take it and execute it, we'll look at it," V Balakrishnan, chief financial officer of India's second-biggest software services provider, told Reuters on Tuesday.

"Why not? If it really makes a strategic fit, why not?"

Infosys generated revenue of about $7 billion in the fiscal year that ended in March.

Infosys is sometimes chided by investors and analysts for being too cautious with its $3.7 billion cash pile, even as rivals such as Tata Consultancy Services and Wipro have boosted their businesses with multiple acquisitions.

Infosys wants to accelerate growth in its software business by building other services around those offerings, an area the company calls products and platforms services, which has potential for acquisitions, Balakrishnan said.

Infosys could also look for deals in consulting, where targets are likely to be smaller, he said.

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It is also looking to ramp up its business in France and Germany, where it would consider buying local operators, and in the healthcare and life sciences industries, where it is a small player, Balakrishnan said.

"Today we're a $7 billion company. Where a good, nice fit comes, which is larger, we'll have a look at it, we're not

(Editing by Greg Mahlich)