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21 December 2011 | Angeline Albert
Infosys’ business process outsourcing subsidiary is expanding its global operations into Australia with its purchase of procurement specialist the Portland Group.
The AUD$37 million (£23.7 million) acquisition deal, announced yesterday, is expected to be concluded in early January.
Portland Group, which has 113 employees in its Melbourne, Brisbane and Perth offices, and headquarters in Sydney, has expertise in sourcing and category management services that complement Infosys BPO's global procurement capabilities.
Infosys BPO already operates in India, the Czech Republic, China, the Philippines, Poland, Mexico, the US and Brazil, employing more than 20,600 people.
CEO and MD Swami Swaminathan, said: "This acquisition will significantly deepen our capabilities and domain expertise in our sourcing and procurement practice. Further, in a dynamic marketplace such as Australasia this will strengthen the top end of our offering in the strategic sourcing and category management functions. It will also enhance the competitiveness, spread of offerings and global reach for our clients."
In July, the Australian arm of PepsiCo gave the Portland Group a three year contract to manage the procurement of freight and local distribution services, and office equipment, as well as provide ongoing spend analysis services in those categories.
Gavin Solsky, CEO of Portland Group, said the acquisition "will allow us to offer our clients a truly integrated and globally competitive solution to deliver procurement benefits in the most effective and efficient way possible".
Infosys BPO closed the 2010-11 financial year with revenues of $426.8 million (£272.3 million). Founded in 1999, Portland reported revenue of AUD$31.3 million (£20.1 million) for the fiscal year ending 30 June 2011.