Infy readies $500 mn for acquisitions

Infosys Technologies, India's second-largest software services exporter, has identified three to five potential acquisition targets, including a consulting company, Chief Executive Officer S Gopalakrishnan said.

The Bangalore-based company may spend as much as $500 million on acquisitions, Gopalakrishnan today reiterated in an interview in New Delhi, where he was attending the Fortune Global Forum.

Infosys in July announced its first purchase in more than three years, agreeing to buy three back-office service centers from Royal Philips Electronics NV for $28 million in cash.

The transaction gave it a $250 million services contract and 1,400 Philips employees who may help it win more European orders and reduce dependence on the United States.

The software developer has lagged behind domestic rivals Tata Consultancy Services and Wipro in making acquisitions in recent years.