Infosys Ltd , India’s No.2 software services exporter, is looking for acquisitions worth up to $700 million, Infosys’ executive co-chairman Kris Gopalakrishnan said on Thursday.
Infosys has been on the hunt for acquisitions in the healthcare and life science sectors and is looking at firms that have platforms or niches in geographies that its lacks.
“Typically, the size we are looking for is up to 10% of our revenues so today our revenues are projected to be about $7 billion so up to $700 million,” Gopalakrishnan told reporters.
“We want to grow our pharma practice, our healthcare practice faster so it’s really to stimulate growth, but strategically. It’s filling in gaps that we have,” he said.
India’s IT sector, which feeds off increased outsourcing by companies looking to cut costs, is expected to face pricing pressure and a decline in new orders as Europe struggles with a debt crisis and the United States battles an economic slowdown.
He said the European financial crisis has weighed on growth in the region and was one of the reasons for the slight downgrade in revenue growth this year to 17-19% from 18-20%.
“The European financial crisis is impacting our growth in Europe,” he said adding that businesses are putting off signing contracts due to the uncertainty in the business environment.
Infosys and its local rivals such as top ranked Tata Consultancy Services also face stiff competition from global players including IBM and Accenture for large outsourcing deals from global corporations.