It takes a village to raise a child. It also takes a village to automate industry. As systems become increasingly complex, no one company can go it alone. Thus the drive for more partnerships, mergers and acquisitions, especially within the Internet of Things (IoT) realm.
Infosys—which we’ve reported on recently as it nurtures its relationships with GE and other industry partners, particularly on two testbeds it’s leading with the Industrial Internet Consortium (IIC)—is set to expand its reach a little further through acquisition. Infosys has signed a definitive agreement to acquire Noah Consulting, which provides advanced information management consulting services for the oil and gas industry.
Noah Consulting helps upstream oil and gas companies plan, architect and deploy information solutions to unlock the value of their oil and gas assets through strategic data management. The acquisition combines Noah’s deep industry knowledge, information strategy planning, data governance and architecture capabilities with Infosys’s ability to provide technology and outsourcing services on a global scale to oil and gas clients.
“The upstream oil and gas industry is facing unprecedented challenges that demand faster and better ways of achieving return on investment,” said Rajesh Murthy, executive vice president and global head of energy, communications and services for Infosys. “This requires a well-defined and -executed information and data management strategy that will allow companies to increase efficiencies across the lifecycle—from exploration to production. With this acquisition, we are uniquely positioned to offer end-to-end data management services to oil and gas companies globally.”
Lower oil prices are creating an urgency for Infosys’s customers to improve operational efficiency and effectiveness, noted Sanjay Purohit, executive vice president and global head of Infosys Consulting. “This acquisition is part of Infosys’s strategy to bring next-generation data analytics solutions to the oil and gas industry.”
John Ruddy, president of Noah Consulting, referenced the new capabilities that combining Noah and Infosys will provide. “Together, we can effect transformational change for our oil and gas clients by using information management to integrate supply chain, safety, environmental and financial data with geoscience, engineering and other operational and technical data—an industry challenge that has never been addressed effectively. We look forward to making a difference together.”
The acquisition was an all-cash deal, with an aggregate purchase consideration of $70 million. The transaction is expected to close before the end of the third quarter of FY 2016, subject to customary closing conditions.