Infosys acquires 100% stake in Singtel's Malaysia arm for $4.4 million

Infosys Consulting Pte. Ltd., a wholly-owned subsidiary of IT services giant Infosys, announced on Wednesday that it has acquired Singaporean telecom major Singtel's delivery centre in Malaysia - Global Enterprise International Malaysia.

Infosys Consulting has made the acquisition with an aim to broaden its presence as a strategic delivery and sales hub in South East Asia for international clients.

The company said in a regulatory filing that it is acquiring 100% share capital in Global Enterprise International Malaysia for a cash consideration of 6 million Singapore Dollars (around $4.4 million or Rs 33.32 crore). The deal is likely to be concluded by December 2021.

Also Read: Infosys ups its revenue guidance for FY22 despite rising attrition woes, to hire 45,000 freshers in FY22

"This move also aligns with Infosys' long-term strategy for communications, media, and technology (CMT) vertical including platform led transformation of customer and service experience for clients," Infosys said in a statement.

The company further stated that the deal will not require "any governmental or regulatory approvals required for the acquisition" and would not come under the definition of a related party transaction.

The development comes at a time when Indian IT services firms are aiming to expand their consulting practice to compete with their global peers.

Also Read: Infosys sees 12-14% revenue growth in FY22, margin at 22-24%
 
Incorporated in 2013, Global Enterprise International Malaysia is a step-down subsidiary of Singtel and is based in Kuala Lumpur, Malaysia.

It acts as a delivery centre to provide customer experience and technology services to Singtel. The company reported revenues of MYR 67.4 million (approx. $16 million) for FY21.