Infosys to increase scrutiny of acquisition targets

Bengaluru: Infosys has put in place stricter measures as due diligence for all its fresh acquisitions even as the company is evaluating bids for the sale of Panaya, the Israeli technology firm that it bought during predecessor Vishal Sikka’s tenure.

The Infosys board led by Chairman Nandan Nilekani had to field questions from shareholders at its annual general meeting on Panaya and Skava, the companies acquired during Sikka’s term that have been put on sale. Infosys wrote off $ 90 million in Panaya saying that it was not strategic to the company.

“There is more due diligence for all acquisitions, going ahead,” said Infosys ceo Salil Parekh. The firm will also monitor the performance of all acquisitions closely.


Sikka quit last August after concerns on disclosure norms raised by Infosys founder NR Narayana Murthy over resignation of former CFO Rajiv Bansal in the $ 200 million Panaya acquisition.

The sale of the two firms is expected to be completed by the end of the current financial year, and will dispose off assets worth Rs 2,060 crore and liabilities worth Rs 324 crore.

Infosys chairman Nandan Nilekani said that the company was focused to grab the huge digital opportunity and is building capabilities internally.

“When I stepped for the second time into Infosys, in August, one of the concerns that you raised was about the company’s stability. We have taken several stepped during the years to remedy this. We have a very stable management team, we have a very stable Board, everybody is united, and agrees that we are really on the verge of something momentous; the focus is now on relentless execution,” said Nilekani.