Global IT and software giant Infosys announced it will pay $200 million to acquire enterprise resource planning software company Panaya. Panaya caters to enterprises with a Software-as-a-Service CloudQuality suite of big data analytics driven software that tests changes to SAP, Oracle EBS, and Salesforce.
Panaya, based in Menlo Park, California, brings a lot of value to Infosys for a relatively small $200 million price. The company claims to have a third of Fortune 500 companies as customers. Sitting on around $5 billion in cash, the acquisition is strategic for Infosys, as it evolves from services to software-driven solutions and builds out its automation and delivery engine.
The acquisition is the first big move that new CEO Vishal Sikka has made since being appointed last July. In a statement, Sikka said that this move is "a key step in renewing and differentiating our service lines. This will help amplify the potential of our people, freeing us from the drudgery of many repetitive tasks, so we may focus more on the important, strategic challenges faced by our clients. At the same time, Panaya’s proven technology helps dramatically simplify the costs and complexities faced by businesses in managing their enterprise application landscapes."
VC-backed Panaya has received $59 in funding since it was founded 9 years ago.