Infosys Confirms It Is Still Seeking a Buyer for Panaya
Infosys declassified Panaya as “held for sale,” as it did not expect “a sale to materialise until March 2019”.
Infosys bought software specialist Panaya for $200 million in 2015. The deal was part of then-CEO Vishal Sikka to eek new growth out of automation, artificial intelligence and innovation. However, the systems integrator failed to effectively integrate Panaya’s CloudQuality™ suite of products into its own offer. The business became a point of contention between senior executives in the company and was reported to be part of the reason for Sikka’s exit. It was subsequently put up for sale by current CEO Salil Parekh.
However, as no likely buyers have emerged, the business, along with another 2015 acquisition, mobile commerce, Infosys has declassified Panaya as "held for sale", as no likely byers are likely to emerge before March 2019.
With Panaya and Skava being relatively small, their consolidation wouldn’t have additional impact on Infosys, said interim Chief Financial Officer Jayesh Sanghrajka.
Sources for QA Financial did not rule out the sale of Panaya in 2019. The SI will also attempt to refocus Panaya's suite of products, according to its earnings release