$200 Mn Well Spent? 3 Reasons Why Infosys Buying Panaya May Be A Good Idea

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Infosys today announced that it will be shelling out $200 million for a little known US-based firm Panaya that is a privately held company backed by venture capital firms like Benchmark Capital, Hasso Plattner Ventures and Battery Ventures. “The acquisition of Panaya is a key step in renewing and differentiating Infosys’ service lines,” CEO Vishal Sikka said in a statement following the acquisition. But here’s three reasons why the company may have spent its $200 million well for the acquisition:

“Clearly, the company has long had a few offering gaps that it needed to fill. This was expected given the recent announcements by Vishal on his intent to be focused on acquisitions to help the company make significant progress on non-linear growth. The mid-size acquisition allows Infosys to onboard the new intellectual property without facing any hassles and also prove easier and lighter for the teams to integrate,”  Sanchit Vir Gogia, Chief Analyst and Group CEO, Greyhound Research told Firstpost.

“With clear benefits on automation, Panaya will offer significant differentiated advantage to Infosys for its Testing Services which continues to be a manual process for many service providers. Testing is one of the critical pain points for end-user organizations given the rampant adoption of new technologies like Cloud, Mobility and User Experience Management,” he said.

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