The Zurich-based Lodestone Holding AG would soon be taken over by Infosys as it had agreed for a deal to purchase the former valued at 330 million Swiss francs.

This acquisition may prove to be a big step for Infosys helping it be a big software-and-services provider for clients which would have a higher importance to the services and consulting. Infosys 3.0, a strategy that is intended to take the company towards its goal was implemented recently.

"This acquisition fits perfectly into that strategy," chief executive S.D. Shibulal said in a statement.
India's power of outsourcing has been contributed and controlled largely by Infosys. However, the company had experienced a shortfall this year. The targeted sales for the year had been missed while also losing the market shares. The company had not given the pay rise that it usually does every year.

Infosys would close the deal, all in cash, by the end of October. Lodestone is expected to add 850 employees to Infosys' current 150,000. There would be at least 750 consultants experienced in advising clients on the use business management software from SAP AG. With this increase in manpower it also expects to see a rise in the number of clients from 700 to 900.

ICICI Securities analyst Kuldeep Koul opined that the acquisition would be a promising one which fits well to the profile of the company. He added that it also shows the intent of the management to continue to deliver powerful consulting and high-value added services.

(AW- Anil)