Consulting and IT services provider Infosys announced today that it will acquire Panaya, an enterprise resource planning (ERP) software company. Worth an enterprise value of about $200 million, the deal is expected to close by the end of March.
Infosys, which is based in Bengaluru, India, said that it will integrate technology from Panaya’s CloudQuality suite to bring automation to some of its software. CloudQuality helps businesses test changes to SAP, Oracle EBS, and Salesforce software by identifying functions that might break and providing potential solutions including code corrections.
In a prepared statement, Vishal Sikka, who was named CEO and managing director of Infosys last summer after resigning from SAP, said “The acquisition of Panaya is a key step in renewing and differentiating our service lines. This will help amplify the potential of our people, freeing us from the drudgery of many repetitive tasks, so we may focus more on the important, strategic challenges faced by our clients. At the same time, Panaya’s proven technology helps dramatically simplify the costs and complexities faced by businesses in managing their enterprise application landscapes.”
Infosys, one of India’s largest software exporters, is currently in the midst of revamping its strategy as it faces challenges including slower revenue growth than competitors like HCL Tech and TCS, and the departure of several key executives. Sikka told TechCrunch’s Ron Miller last July that he would take time to understand Infosys’ problems and that he believes software solutions should be about expanding the knowledge and capability of an organization.
According to Crunchbase, Panaya has received $59 million in funding. Its last round, a Series E of $20 million, was disclosed in January.Featured Image: kentoh/Shutterstock