In its first major acquisition, Infosys Technologies has bought a 100% stake
in Australia-based Expert Information Services for approximately $22.9 million.
The Australian company will be renamed Infosys Technologies (Australia) Pvt Ltd.
As per the agreement signed between the two companies, Infosys will make an
upfront payment of A$19 million, while the remaining A$12 million will be
payable over three years ending March 31, 2007, based on achieving certain
Founded in 1994, Expert is one of Australia’s leading infotech service
providers specializing in the design, building and integration of business
solutions. The company is headed by Gary Ebeyan, who will head Infosys’
Australian operations after the acquisition. The company earned revenue of $34.6
million with a net profit of $5.2 million for the year ended
June 30, 2003.
"Ever since we were listed on the Nasdaq in 1999, and till the recent
ADR issue, we have said that we will use the capital for possible acquisitions.
We were looking for a company whose values were similar to those of Infosys and
have seen these qualities in Expert," Infosys chairman and chief mentor NR
Narayana Murthy said. The company has large clients across verticals like
telecom, finance, retail and government. The telecom vertical accounts for about
74% of the company’s revenues. Expert employs about 330 people and has the
largest number of Microsoft accredited staff in Australia.
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