Simplus Acquisition: Key Details, Impact, and What Comes Next

Infosys has acquired Simplus, a leading Salesforce consulting and Platinum Partner, in a strategic move to enhance its enterprise cloud capabilities. This acquisition, following Infosys' previous purchase of Fluido, positions the company as a comprehensive provider of Salesforce solutions. The integration of Simplus' expertise is expected to accelerate digital transformation for clients across various industries.

What Is Simplus?

Simplus, founded in 2014, specializes in Salesforce consulting and implementation services. Its core offerings include Business Transformation Services, Program Delivery, Strategic Managed Services, and Change Management. As a Salesforce Summit Partner, Simplus stands out with its resource continuity, flexible capacity planning, and diverse skill set in API-based and middleware integrations. The company’s human-centric leadership and global team, representing 17 nationalities and 20 languages, further differentiate it in the market.

Who Acquired Simplus?

Infosys is a global leader in next-generation digital services and consulting. The company provides a wide range of IT services, including application development, cloud services, and cybersecurity. Infosys also offers consulting services to help businesses strategize and implement digital transformation. With platforms like EdgeVerve and Finacle, Infosys serves multiple industries, including aerospace, automotive, and healthcare. Recognized as a top 3 IT services brand, Infosys is known for its strategic collaborations and innovative solutions.

When Was Simplus Acquired?

Infosys announced its acquisition of Simplus on February 10, 2020, and completed the transaction on March 13, 2020. This acquisition is part of a broader trend in the IT services industry, where companies are increasingly focusing on cloud-first digital transformation capabilities. The timing aligns with Infosys' strategic efforts to enhance its Salesforce consulting arm, following its acquisition of Fluido in 2018, and reflects the growing demand for robust cloud solutions across various industries.

Why Was Simplus Acquired?

• Market Expansion: The acquisition of Simplus significantly strengthens Infosys' presence in key markets such as the USA and Australia. Simplus has offices in North America, Sydney, Melbourne, London, and a large delivery center in Manila, which allows Infosys to offer more comprehensive Salesforce capabilities to its existing clients and capture more lucrative cloud integration services.
• Technology Integration: Simplus brings recognized expertise in cloud consulting, implementation, data integration, change management, and training services for Salesforce CPQ and Billing applications. This integration enhances Infosys' capabilities in offering cloud-first digital transformation solutions, particularly in the Quote-to-Cash process, which involves sharing quotes, signing contracts, and collecting cash post-sale.
• Competitive Advantage: By acquiring Simplus, Infosys enhances its competitive advantage by deepening its Salesforce consulting expertise and expanding its presence in key markets. The acquisition provides Infosys with globally recognized Salesforce expertise, industry knowledge, solution assets, deep ecosystem relationships, and a broad clientele across various industries, thereby strengthening its position against competitors.

Acquisition Terms

• Acquisition Price: $250 million
• Payment Method: The payment method was not publicly disclosed.
• Key Conditions or Agreements:
  • The acquisition is expected to close during the fourth quarter of fiscal 2020.
  • The deal is subject to standard regulatory approval.
  • Infosys aims to enhance its position as an end-to-end Salesforce enterprise cloud solutions and services provider.
  • The acquisition reaffirms Infosys' commitment to the Salesforce ecosystem and aims to help global enterprises transform their businesses.
  • The cultural alignment and preservation of company values between Infosys and Simplus are emphasized as key factors in the partnership.

Impact on Simplus

The acquisition of Simplus by Infosys has led to significant changes in operations and management. Simplus now operates under the Infosys umbrella, integrating its leadership team and operations with Infosys' existing services. This integration aims to enhance Infosys' global delivery capabilities and Salesforce expertise, particularly in cloud consulting, implementation, data integration, change management, and training services. The strategic alignment between the two companies is expected to foster a seamless transition and drive accelerated growth.

In terms of product offerings and services, the acquisition has bolstered Infosys' capabilities in providing end-to-end Salesforce enterprise cloud solutions. Simplus' expertise in Salesforce CPQ and Billing applications complements Infosys' existing services, enabling the combined entity to offer unparalleled cloud-first digital transformation solutions. Employee reactions have been positive, with key executives from Simplus expressing excitement about the cultural alignment and growth opportunities. While specific customer reactions are not detailed, the acquisition is positioned to unlock additional value for clients, enhancing their digital transformation journeys.

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