Infosys Takes over Technology Startup Panaya in a US$200 million Deal

Published Date : Feb 17, 2015

Infosys is procuring a startup named Panaya that assists companies in managing key changes to their software systems, in the first signature acquirement by Mr. Vishal Sikka after he took over as the CEO in August, 2014. Panaya, which has generated US$59 million from venture capital investors, consisting of a firm founded by mentor of Mr. Sikka and SAP co-founder Hasso Plattner, is being worth US$200 million.

Mr. Sikka stated that the acquirement of Panaya is a major step in renovating and distinguishing their service lines. This will help in amplifying the potential of their employees, freeing them from the labor of many recurring tasks, so they may aim more at other important and strategic tests faced by their clients. The shares of Infosys closed at a lower point by 0.6% on the NSE on that day when the benchmark Nifty index ended almost unchanged.

Infosys plans to get the technology of Panaya, centered on enterprise resource planning software management at present, to other service lines such as its application development, banking software Finacle, and infrastructure management.

Mr. Sikka also stated on a conference call with analysts that they see great possibility in their core technology. It will take their couple of months to see how they can use the technology to other areas, and any investment in those procedures can be financed from internal cash flows.