Infosys Acquires German ER&D Firm in-tech for $480 Million

19 Apr 2024 , 03:08 PM

Infosys, a leading IT firm, announced the acquisition of in-tech, a German engineering R&D services provider focused on the automotive industry, for $480 million (450 million euros), as disclosed in a filing with the BSE.

This acquisition is aimed at strengthening Infosys’ engineering R&D capabilities and assisting global clients in their digital engineering journey, according to the company’s statement. The deal is expected to be finalized in the first half of fiscal 2025, subject to regulatory approvals.

The trend of IT services companies acquiring ER&D firms to enhance their revenue streams is on the rise. For instance, HCLTech acquired a 100% equity stake in ASAP group, a German automotive engineering services provider, last year.

In-tech, headquartered in Germany, is instrumental in driving digitization in various sectors including automotive, rail transport, and smart industries. It specializes in developing solutions for e-mobility, connected and autonomous driving, electric vehicles, off-road vehicles, and railroad systems.

With the acquisition of in-tech, Infosys gains access to marquee German OEMs, strong client relationships, and extensive industry expertise. In-tech boasts a multidisciplinary team of 2200 professionals across locations in Germany, Austria, China, the UK, and nearshore locations in the Czech Republic, Romania, Spain, and India.

Jasmeet Singh, EVP and global head of manufacturing at Infosys, emphasized the significance of the automotive industry’s transformation towards connected, autonomous, and electric vehicles, stressing the role of electronics and software in driving value for next-generation vehicles.

Tobias Wagner, CEO of in-tech, highlighted the strategic partnership with Infosys as a pivotal moment, providing growth opportunities and enhanced value for clients. He emphasized the comprehensive coverage of the end-to-end process, crucial for meeting customers’ needs effectively.

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