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IT bellwether Infosys Technologies on Thursday said its subsidiary Infosys BPO will acquire US-based McCamish Systems for an initial payment of $38 million (about Rs 176.6 crore).
Infosys BPO has signed a definitive agreement to acquire all the outstanding interests of McCamish Systems LLC, Infosys Tech said in a filing to the Bombay Stock Exchange.
"The upfront consideration for the deal is $38 million, with up to an additional $20 million payable to the sellers if McCamish Systems achieves certain financial targets in the future," the company added.
The acquisition is expected to be completed later this year. "We look forward to this combination with McCamish, and welcome an exceptional group of professionals with strong skill sets to the Infosys family who will enrich our service capabilities in the USA," Amitabh Chaudhry, CEO & MD, Infosys BPO said.
The acquisitions is expected to enhance Infosys' capability to provide complete business solutions for insurance and financial industries.
"Infosys BPO has in-depth knowledge of the insurance and financial services sector, and this deal reinforces our relationship position in providing business platform services," Chaudhry said. The combination is likely to enable McCamish to serve larger portfolio of transactions for clients and expand into global markets.
Shares of Infosys Technologies were trading at Rs 2,336 on the BSE, up 1.18 per cent from its previous close.