“Infosys Ltd. (INFO), which sits on the largest cash pile among India’s computer-services providers, is prepared to spend as much as $500 million on a single acquisition in a European market.
Infosys may make another attempt to acquire a company of that size after it walked away from a plan to buy U.K.-based Axon Group Plc for 407 million pounds ($644 million) in 2008, Chandrashekar Kakal, the company’s global head of business IT services, said in a telephone interview.
“We do have cash, but we are looking for a company which adds to our capability and becomes complementary to our growth rather than becoming a laggard,” he said.
Infosys’s war chest of about $4 billion is more than twice the size that of Tata Consultancy Services Ltd. (TCS) Indian software companies, after a decade of growth fuelled by the outsourcing of jobs from the U.S., are turning to acquisitions to expand into Europe, now the second-largest source of theirrevenues. Making purchases in Europe may help Bangalore-based Infosys achieve a target of getting 40 percent of its sales from the region, up from about 22 percent….”
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