Lodestone AG acquistion by Infosys Ltd

Bangalore based global outsourcing and infotech bellweather Infosys Ltd made its first big ticket acquisition in october 2012 when it acquired Zurich based global consulting firm Lodestone AG !he acquisition estimated at "#$0 million%1&$0 crore ru'ees( was the first high )alue acquisition by Infosys Ltd in its three decade history Infosys Ltd is an Indian I! giant based in Bangalore with a market ca'italisation of a''ro*iomately "#2 billion It has a strong 'resence worldwide with a ma+or em'hasis on the ,orth Ameriocan market from where it earns ma+ority of its re)enue It 'ro)ides business consultinginformation tyechnology consulting- outsourcing- software solutions among a host of other ser)ices It has been the bellweather of the Indian I! sector for the 'ast three decades due to its high quality business solutions It has offices around ./ offices s'read o)er 1$ locations em'loying more than 1-.0-000 'eo'le In 1&&& it became the first Indian com'any to list on the ,A01A2 Lodestone 3anagement 4onsulting is a Zurich- 0wit5erland based global consulting firm s'eciali5ing in strategy or 'rocess o'timi5ation and I! transformation It has a strong 'resence in the 6uro'ean market with an en)iable list of clients s'read across different sectors including B37Allian5- 8oche- 3unich 8e etc It em'loys o)er 9$0 'eo'le across 1/ destinations worldwide It is es'ecially known for its base of o)er /$0 0A: consultants 7ith the materialisation of acquisition after clearances from regulators Infosys agreed to kee' the 46; of Lodestone in his current 'osition and o'erate it as a se'erate entity :ost the deal the new com'any was named as Infosys Lodestone AG

Infosys Ltd - battling with falling re)enues due to global meltdown decided to go for big<ticket acquisitions as 'art of its Infosys # 0 strategy =a)ing a cash reser)e of about 2$-000 crore ru'ees hel'ed Infosys in 'icking out the best asset to add to its arsenal !he acquisition of Lodestone AG ga)e Infosys a strong 'resence in 0A: solutions and hel'ed it to gain a strong foothold in the 6uro'ean- 3iddle 6ast and African markets !he client base of o)er 200 com'anies and the a)ailibilty of highly trained 0A: consultants would hel' Infosys in making a 'resence in the areas where it lacked 're)iously 7ith this acquisition Infosys mo)ed u' the ladder from being a body sho' 'ro)ider to high )alue creator Infosys will also gain from the trademark I16A methodology I16A re'resents insight- design- e*ecute and achie)e !his methodology uses si*< sigma standards and 0A: A0A: to im'ro)e the quality of im'lementation outcomes !he acquisition of Lodestone AG by Infosys is beneficial for Infosys by +udging the )arious 'ros and cons of the deal Infosys seems to gain from the e*'ertise which Lodestone brings under its umbrella Lodestone es'ecially managed to achie)e a growth in re)enues when the 6uro'ean market was facing a gloom indicating the robust structure Infosys is about to acquire Lodestone on the other hand will gain from the )ast ca'ital 'ool which Infosys brings with it It also o'ens u' the sco'e for growth of Lodestone s'ecific business from the e*isting base of o)er /00 clients of Infosys Issues of management do arise in these aqcquisitions but those can be taken care by ado'ting the best business 'ractices which Infosys has been following o)er a 'eriod of time

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