IT giant Infosys eyes small buys

BANGALORE, INDIA: It seems that recession is no longer haunting Infy honchos in their nightmares. Because the company is now eying some acquisitions.

But India's IT major is not too aggressive on its shopping plans either. On the radar are companies 10 per cent of its size.

"It will be difficult to integrate larger companies with us. We expect $5.5 billion revenue this year. So ideally we look for companies with $500 million turnover or less," a PTI report quoted Infosys chief executive officer and managing director Kris Gopalakrishnan as saying.

He also denied the reports that the company is acquiring the London-based computer-services provider Logica.

“There is no proposal to acquire Logica. The company (Infosys) has a core group that looks in to acquisitions and mergers of smaller companies, as they can be easily integrated,” Gopalakrishnan said.

On May 21, The Daily Mail reported that Infosys was considering buying London-based computer-services provider Logica for $4.2 billion in cash without saying where it got the information.

Hinting at the line of business along which its growth plans are being designed, he said, "We will definitely look at consulting, business process outsourcing and other platforms to leverage."

(Do you think it is right time for Infosys to look out for acquisitions? Please leave your comments in the box below.)