On Monday announced the acquisition of Israel’s New Jersey-based Panaya for $200 million in Cash. This is Indian IT giant Infosys’s first acquisition in Israel, and second largest acquisition since the September 2012 – deal to acquire Zurich-based Lodestone Holding. The deal is expected to close before March 31, 2015.
Panaya, founded in 2006 by Yossi Cohen, provides cloud-based quality management services for enterprise application. Its clients include companies such as Coca-Cola, Mercedes-Benz and Unilever.
The list of investors includes the Benchmark Cpital and Battery Ventures venture capital firms, alongside Hasso Plattner Ventures, who was among the founders of SAP.
Moshe Lichtman and Haim Shani’s Israel Growth Ventures, invested in the company $20 million in January 2015. Panaya raised to date $59 million.
“Panaya’s acquisition reflects Infosys’ execution of its Renew and New strategy to enhance the competitiveness and productivity of current service lines by leveraging automation, innovation and artificial intelligence, ” the company said in a statement.
The acquisition comes at a time when Infosys, India’s second-biggest IT outsourcing company, is betting on new technology to boost growth. Under chief executive Vishal Sikka, Infosys has been making big bets on automation and other new technology like artificial intelligence and cloud-based services as the company tries to regain some lost ground from rivals like Tata Consultancy Services.