Infosys BPO to acquire outstanding interests of McCarmish Systems
12 November 2009
Infosys BPO Ltd, the business process outsourcing arm of Infosys Technologies, today told the exchanges that the company has signed an agreement to acquire in toto, the outstanding interests of US-based business process solutions provider McCarmish Systems LLC.
The acquisition is expected to be completed later this year on satisfaction of certain terms of closing.
The upfront payable sum under the deal is $38 million with around $20 million in additional payments if McCamish Systems achieves certain financial targets in the future.
Infosys says the deal would enhance its capability to deliver end-to-end business solutions for the insurance and finance services industries.
McCamish has 39 clients of which six are common with Infosys.
According to Amitabh Chaudhary, head of BPO division this is the companys first acquisition on the platform side. McCamish which is a turnaround story and not profitable at present is expected to scale up margi ns in a couple of years, which will be as good as company's BPO operations. McCamish's clients include 10 of the 20 top insurers.
McCamish Systems provides innovative solutions to the insurance and financial services industries and for the year ended 31 December 2008, the company posted a revenue of $38.2 million.
Infosys's consolidated net profit increased 0.85 per cent to Rs1540 crore on 2.06 per cent growth in revenue to Rs5585 crore in Q2 September 2009 over Q1 June 2009. The operating profit margin increased to 34.6 per cent in Q2 September 2009 from 34.1 per cent in Q1 June 2009.
Infosys offers information technology (IT) services including consulting, software development, software re-engineering, systems integration, package evaluation and implementation, software maintenance and business process management.