September 10, 2012 – Infosys has proposed $350 million U.S. (330 Swiss francs) to acquire global consultancy Lodestone Holding AG in a move meant to pad its management expertise across a handful of industries and with SAP systems.
Lodestone has more than 850 employees, 750 of whom are “experienced SAP consultants,” who will become part of Infosys’ Consulting and Systems Integration division, according to a news release on the proposed deal. Infosys pegged the combination of its existing consulting practice focused on SAP business systems with that of Lodestar to reach $1 billion revenue a year. The Consulting and Systems Integration division accounts for approximately one-third of revenue at Infosys and would expand its client possibilities in Europe, Latin America and the Asian Pacific. Lodestone would also bring new advisory services to Infosys in the industries of manufacturing, automotive and life sciences.
Lodestone advizes international companies on IT change, and strategy and process efficiencies. It was founded in 2005 and is based in Zurich, Switzerland.
Infosys reported more than $7 billion in revenue in its most recent fiscal year report. It hasn’t been one of the most active firms in terms of mergers and acquisitions.
The deal is subject to closing conditions and is expected by Infosys to close in October.