| While the move is the first of its kind for the technology major, some analysts believe that it is about time Infosys made an acquisition. |
| According to H V Harish, director, A F Fergusson, "Fundamentally, Infosys should have gone on an acquisition mode about three years ago. In 2000, especially when their market cap was huge, they had lobbied with the government to obtain a specific approval for investing upto $1 billion in any foreign company. Even though they managed to get the clearance, they have been silent ever since. Though the size of this acquisition is much smaller, it is indeed a good sign as they should have done this long ago." |
| "Logically," Harish adds, "it would have been good if they had looked at companies based out of US. Nevertheless, I think it is a positive move." |
| Another observer from a well-known business consulting major feels that this acquisition not only fits well into Infosys' mode of operation but also gives it a major fillip. |
| "Expert derives a majority of its revenues from the telecom segment. This is one domain which Infosys is trying focus on. As a result of this takeover, Infosys overall revenues from the telecom market is bound to increase." |
| The analyst added that the structuring of the deal could not have been any better. "Besides the upfront cash payment of A$19 million, the remaining A$12 million is payable over three fiscal years. This would be based on key parameters like achieving certain financial targets and retaining top level management of Expert. This part of the deal ensures that the key drivers of growth, which includes the top level management of the company, stays with them to achieve the goals." |
| Interestingly, the analyst is quick to add that even though the size of the acquisition is "decent", it is not coming in late for Infosys. |
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