Infosys To Strengthen ER&D Capabilities With €450 Mn Acquisition Of Germany-based in-tech
India’s second largest IT player Infosys has signed a definitive agreement to acquire in-tech, an Engineering R&D services provider focused on the German automotive industry for EUR 450 million.
According to the company, this strategic move will look to fortify Infosys’ Engineering R&D capabilities and reaffirm its work towards guiding global clients through their digital engineering journey.
Headquartered in Germany, in-tech is recognised as one of the fastest-growing Engineering R&D services providers shaping digitisation in various sectors, including automotive, rail transport and smart industries. With a focus on areas such as e-mobility, connected and autonomous driving, and electric vehicles, in-tech has built a reputation for delivering innovative solutions in system design, methodical consulting, and advanced electronics platform development for automotive-specific software and hardware systems.
The acquisition of in-tech brings several advantages to Infosys. Firstly, it grants access to in-tech’s extensive client base, which includes marquee German original equipment manufacturers (OEMs), strengthening Infosys’ presence in the automotive industry. Additionally, in-tech’s multidisciplinary team of 2,200 professionals across various global locations, including Germany, Austria, China, the UK, and nearshore locations in the Czech Republic, Romania, Spain, and India, enhances Infosys' delivery capability and expertise.
In a statement, Jasmeet Singh, EVP and Global Head of Manufacturing, Infosys, said, “The automotive industry today is going through a pivotal change, with connected, autonomous, and electric vehicles, and most importantly software-defined vehicles. Electronics and software will drive value for next generation vehicles. Infosys’ leadership with comprehensive offerings serving global auto OEMs, tier-one, and e-mobility start-ups, coupled with in-tech’ engineering prowess presents a differentiated value to our clients bringing high quality innovative products to market faster.”
The acquisition is expected to close in the first half of fiscal 2025. With a total cost of EUR 450 million, including upfront and earnouts, the acquisition possibly signifies Infosys’ strategic investment in strengthening its position in the rapidly evolving automotive sector.
“Over the past 22 years, we have created an impressive company history, characterized by organic growth, strategic acquisitions and high profitability. This strategic partnership with Infosys represents a decisive turning point for us: It opens up unprecedented growth opportunities, and also adds tremendous value to our offering for our clients,” said Tobias Wagner, in-tech CEO.
