BANGALORE (Reuters) - Infosys Technologies Ltd, India’s No. 2 software services exporter, is on the hunt for acquisitions in Europe and Japan and in industries including healthcare and public services, its chief executive said on Sunday.
Speaking to Reuters a day after the company announced changes in its top-level management, S. Gopalakrishnan said Infosys was also seeking acquisitions in new areas like cloud computing.
“Our philosophy has always been that you plan organic growth,”
said Gopalakrishnan, who is set to step down as chief executive and become co-chairman in August.
“You keep your eyes and ears open, you have a dedicated team looking at acquisitions,” he said.
Infosys would make an acquisition when it found a target that was at the right price with the right strategic fit, he added.
“We do not want to set a target for acquisition because we are not doing acquisition for growth. We are doing acquisitions for strategic fit and adding capability at this point of time,” he said at the company’s sprawling headquarters campus on the outskirts of Bangalore, India’s IT hub.
Gopalakrishnan said by investing in new industries and geographies, Infosys was looking to build multiple engines of growth over the next 3-5 years.
“There are multiple strategic requirements for acquisition so those are the things we are looking at. Typically a smaller acquisition rather than a large one,” he said.
Infosys, which is also listed on Nasdaq, on Saturday announced top management changes linked to the retirement of its billionaire chairman and stuck to its practice of giving its founders a shot at running the firm.
Reporting by Bharghavi Nagaraju; Editing by Tony Munroe