Infosys announced on Monday that in a nearly $250 million deal, it will be acquiring Simplus, one of the fastest-growing Salesforce Platinum Partners in the US and in Australia.
The regulatory filing says that the acquisition costs “$200 million including contingent consideration to be paid for the acquisition of shares subject to closing adjustments.”
Also, employee incentives and retention payments add up to $50 million to meet particular performance conditions over three years, the regulatory filing added.
A large part of Simplus is owned by institutional investors, founders and key employees, and Salesforce’s stake in it is in the minority. The company’s revenue was at $67.1 million for the fiscal year that had ended on January 31st this year.
In a statement, Infosys said: “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.”
This acquisition will bring Infosys the knowledge and expertise that comes from Salesforce, solution assets, deep ecosystem relationships, a broad clientele that spreads across many different industries, such as high tech, financial services, retail, healthcare, life sciences, and healthcare, etc.
It is expected for this deal to close during the fourth quarter of the 2020 fiscal year. As per usual, it is subject to standard regulatory approval.
This acquisition is taking place after the purchase of Fluido, which is another Salesforce consulting shop, in 2018. This move shows that Infosys is looking to develop a deeper expertise revolving Salesforce which makes this a key piece when it comes to consulting operations as they move forward.
Pravin Rao, the COO of Infosys said, “this acquisition is key to staying relevant to the digital priorities of our clients and demonstrates our commitment to the Salesforce ecosystem.”
We have viewed this partnership from a culture-first lens from the beginning, and we believe that the alignment of our company DNA will allow us to accelerate growth,” the CEO and co-founder of Simplus, Ryan Westwood said.