India Investment, Stocks, Credit Card and Retail Forum
Investments in Indian Equity and Research => India Stocks and Shares => Topic started by: chetan on November 13, 2009, 10:45:46 AM
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Infosys' BPO is to acquire the US-based insurance business-process solutions provider, McCamish Systems, in an upfront all-cash (US$38m) deal (at 1x CY08 revenue). Infosys will pay an additional US$20m in case the performance target is met (1.5x CY08 revenue, in case the earn-out is paid). This acquisition
is Infosys’ first on the platform-side BPO.
McCamish Systems reported full-year revenues of US$38.2m. At present, McCamish is loss-making. The transaction is expected to be completed by end-FY10.
Infosys BPO contributed 6% to Infosys’ FY09 revenue and currently has 16,033 employees. The acquisition will enhance Infosys’ capability in the insurance and financial services vertical and provide cross-sell opportunities. It will positively contribute to Infosys’ strategy of growing its non-linear revenue