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LODESTONE ACQUISITION BY
       INFOSYS




        Presented By: Pradeep kumar Tiwari
                      Enrol no.-1103102183
INFOSYS
 Infosys      Limited,     formerly     Infosys
Technologies     Limited       is   an    Indian
multinational provider of business consulting,
technology, engineering and outsourcing services
company. It is headquartered in Bangalore,
Karnataka.

 Infosys' earlier acquisitions include Portland
(strategic sourcing and category management
services) in 2011, McAmish in 2009, Expert Info
in 2003 and IQ Financial in 2002.
INFOSYS FINANCIAL STATUS
                      Mar'12         Mar'11         Mar'10         Mar'09         Mar'08


  TOTAL INCOME           33,002.00      26,493.00      22,011.00      21,138.00      16,326.00




         TOTAL
                         21,191.00      16,970.00      13,778.00      13,356.00      10,684.00
   EXPENDITURE




Profit and Loss for
                          7,905.00       6,404.00       5,707.00       6,191.00       4,465.00
           the Year




   Shares in Issue
                          5,742.30       5,741.52       5,738.25       5,728.30       5,719.96
           (Lakhs)




 EPS - Annualised
                           147.50         112.22         101.13         101.58          78.15
             (Rs)
LODESTONE
 Lodestone is a global management consultancy
committed to designing and delivering solutions
that enable international companies to thrive in
today’s complex business environment.

They help their clients to define the measurable
business benefits that they will achieve together
using our teams of client-focused consultants
who combine a passion for excellence with strong
process and SAP skills and in-depth experience
of transformational change in their industry.
LODESTONE'S UNITS AND HOW
THEY DIVERSIFY INFOSYS
ACQUISITION PROCESS
 Infosys,acquired Zurich-based Lodestone Holding
  AG, a leading management consultancy firm, for
  330 million Swiss francs ($345 million or Rs.1,925
  crore), which is expected to strengthen the
  company’s consulting capabilities.
 Infosys will pay two-thirds of the amount
  immediately while the rest is to be paid after three
  years.
 At present, consultancy businesses contribute 31
  per cent of Infosys’ revenues.
FINANCIALS OF THE
ACQUISITION

 This is an area in which even the strongest
 Infosys bashers must give it credit. Looking at
 the revenue multiples paid by service
 providers for some of their recent acquisitions:
  HP-Autonomy: 11x
  HCL-Axon: 2.2x
  Wipro-Infocrossing: 2.6x
  TCS-Citi BPO: 1.9x
  Infosys-Lodestone: 1.6x
MAIN REASON BEHIND ACQUISITION
 The Lodestone acquisition will significantly
 enhance Infosys' global presence, particularly in
     continental Europe and
     emerging markets like Latin America and Asia Pacific.

 The acquisition may take Infosys a step closer to
  its goal of becoming a software-and-services
  giant providing clients with higher value services
  and consulting. The company has recently
  completed implementing Infosys 3.0, a strategy
  that it expects will take it towards this goal.
 To compete with the competitors.
SIX WAYS IN WHICH THE DEAL WILL HELP
                  INFOSYS


1)Clients: Lodestone will bring in its more than 200
  clients across sectors, including manufacturing,
  automotive, life sciences, chemicals, and
  consumer goods.

  Its clients like BMW, Allianz, Kimberly-
 Clark,Sandoz SHAPE, Warner Chilcott, Munich
 Re, Roche will now be with Infosys, which has a
 client base of 700 firms. The acquisition is also
 expected to boost Infosys' SAP client base.
2)Revenues: In 2011, Lodestone reported
  revenues of 207 million Swiss Francs (Rs 1,200
  crore), up from 181 million Swiss Francs in 2010.
   This will increase Infosys' annual revenue and
  help it maintain its lead over other rivals
  like Cognizant and Wipro. Post-acquisition, the
  consulting and package implementation revenues
  of Infosys are expected to be more than $1
  billion, according to analysts.
3) Geography: The deal will bolster Infosys'
  presence in Europe, Middle East and Africa. "In
  the short term, the economics of EMEA will work
  against Infosys as Eurozone concerns amplify
  into 2013.
• Long-term, the acquisition may prove itself out as
  Infosys gains a greater foothold through
  consolidation," said Ray Wang Principal, analyst
  and CEO at Constellation Research, in a report.
 The acquisition will also enhance the presence of
  Infosys in new markets like Latin America and
  Asia Pacific.
4) Employees: Zurich-based Lodestone has about
  850 employees, including 750 SAP consultants.
  The consultants will help Bangalore-based
  Infosys to ramp up expertise in SAP-based
  solutions.
5) Perception: The deal will go a long way in helping
  Infosys shake off its image as a conservative
  company hesitant to make bold acquisitions.

  While research firm Constellation Research said
 Lodestone's methodology and culture will transform
 Infosys, Mumbai-based brokerage house Prabhudas
 Lilladher saw it as a much-needed booster for the
 struggling IT bellwether.
6)Lodestone methodology and culture will
  transform Infosys. Lodestone brings it’s
  trademark IDEA methodology. IDEA represents
  insight, design, execute, and achieve. This
  approach aligns with Six Sigma standards and
  SAP ASAP to improve the quality of
                  implementation
                    outcomes.
Lodestone acquisition by infosys

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Lodestone acquisition by infosys

  • 1. LODESTONE ACQUISITION BY INFOSYS Presented By: Pradeep kumar Tiwari Enrol no.-1103102183
  • 2. INFOSYS Infosys Limited, formerly Infosys Technologies Limited is an Indian multinational provider of business consulting, technology, engineering and outsourcing services company. It is headquartered in Bangalore, Karnataka. Infosys' earlier acquisitions include Portland (strategic sourcing and category management services) in 2011, McAmish in 2009, Expert Info in 2003 and IQ Financial in 2002.
  • 3. INFOSYS FINANCIAL STATUS Mar'12 Mar'11 Mar'10 Mar'09 Mar'08 TOTAL INCOME 33,002.00 26,493.00 22,011.00 21,138.00 16,326.00 TOTAL 21,191.00 16,970.00 13,778.00 13,356.00 10,684.00 EXPENDITURE Profit and Loss for 7,905.00 6,404.00 5,707.00 6,191.00 4,465.00 the Year Shares in Issue 5,742.30 5,741.52 5,738.25 5,728.30 5,719.96 (Lakhs) EPS - Annualised 147.50 112.22 101.13 101.58 78.15 (Rs)
  • 4. LODESTONE Lodestone is a global management consultancy committed to designing and delivering solutions that enable international companies to thrive in today’s complex business environment. They help their clients to define the measurable business benefits that they will achieve together using our teams of client-focused consultants who combine a passion for excellence with strong process and SAP skills and in-depth experience of transformational change in their industry.
  • 5. LODESTONE'S UNITS AND HOW THEY DIVERSIFY INFOSYS
  • 6. ACQUISITION PROCESS  Infosys,acquired Zurich-based Lodestone Holding AG, a leading management consultancy firm, for 330 million Swiss francs ($345 million or Rs.1,925 crore), which is expected to strengthen the company’s consulting capabilities.  Infosys will pay two-thirds of the amount immediately while the rest is to be paid after three years.  At present, consultancy businesses contribute 31 per cent of Infosys’ revenues.
  • 7. FINANCIALS OF THE ACQUISITION  This is an area in which even the strongest Infosys bashers must give it credit. Looking at the revenue multiples paid by service providers for some of their recent acquisitions:  HP-Autonomy: 11x  HCL-Axon: 2.2x  Wipro-Infocrossing: 2.6x  TCS-Citi BPO: 1.9x  Infosys-Lodestone: 1.6x
  • 8. MAIN REASON BEHIND ACQUISITION  The Lodestone acquisition will significantly enhance Infosys' global presence, particularly in  continental Europe and  emerging markets like Latin America and Asia Pacific.  The acquisition may take Infosys a step closer to its goal of becoming a software-and-services giant providing clients with higher value services and consulting. The company has recently completed implementing Infosys 3.0, a strategy that it expects will take it towards this goal.  To compete with the competitors.
  • 9.
  • 10. SIX WAYS IN WHICH THE DEAL WILL HELP INFOSYS 1)Clients: Lodestone will bring in its more than 200 clients across sectors, including manufacturing, automotive, life sciences, chemicals, and consumer goods. Its clients like BMW, Allianz, Kimberly- Clark,Sandoz SHAPE, Warner Chilcott, Munich Re, Roche will now be with Infosys, which has a client base of 700 firms. The acquisition is also expected to boost Infosys' SAP client base.
  • 11. 2)Revenues: In 2011, Lodestone reported revenues of 207 million Swiss Francs (Rs 1,200 crore), up from 181 million Swiss Francs in 2010. This will increase Infosys' annual revenue and help it maintain its lead over other rivals like Cognizant and Wipro. Post-acquisition, the consulting and package implementation revenues of Infosys are expected to be more than $1 billion, according to analysts.
  • 12. 3) Geography: The deal will bolster Infosys' presence in Europe, Middle East and Africa. "In the short term, the economics of EMEA will work against Infosys as Eurozone concerns amplify into 2013. • Long-term, the acquisition may prove itself out as Infosys gains a greater foothold through consolidation," said Ray Wang Principal, analyst and CEO at Constellation Research, in a report.  The acquisition will also enhance the presence of Infosys in new markets like Latin America and Asia Pacific.
  • 13. 4) Employees: Zurich-based Lodestone has about 850 employees, including 750 SAP consultants. The consultants will help Bangalore-based Infosys to ramp up expertise in SAP-based solutions.
  • 14. 5) Perception: The deal will go a long way in helping Infosys shake off its image as a conservative company hesitant to make bold acquisitions. While research firm Constellation Research said Lodestone's methodology and culture will transform Infosys, Mumbai-based brokerage house Prabhudas Lilladher saw it as a much-needed booster for the struggling IT bellwether.
  • 15. 6)Lodestone methodology and culture will transform Infosys. Lodestone brings it’s trademark IDEA methodology. IDEA represents insight, design, execute, and achieve. This approach aligns with Six Sigma standards and SAP ASAP to improve the quality of implementation outcomes.