Indian consultancy and services giant Infosys Technologies has announced an agreement to buy Melbourne services company Expert Information Services for $31 million.
The deal is subject to standard closing conditions and will be completed in January, a statement released from Infosys headquarters in Bangalore said.
Gary Ebeyan, CEO at Expert IS, said the merger was a “perfect fit” with Expert's business strategy. Expert IS will be renamed Infosys Technologies (Australia).
“The new entity will allow us to deliver high-quality, leading edge solutions to our existing and new customers with an extraordinary value proposition based on the global delivery model of Infosys,” Ebeyan said.
The Infosys statement said the $31 million would be made up of payment in cash and earn-out on achieving certain financial targets over three years, ending 31 March 2007.
Expert IS recorded $46 .7 million in revenue for the fiscal year ending 30 June 2003, including a net profit after tax of $7 million.
Last week, a source close to the company told iTnews that Infosys might acquire Expert IS. There was speculation that 40 Expert IS positions in the Telstra account would move to India and that Expert IS jobs in Victoria were also at risk, the source said.
Expert IS's Ebeyan was not available for comment at the time of going to press. However, a local announcement is expected shortly.