India's second largest IT services firm Infosys Friday said it has teamed up with Temasek to form a joint venture that will support the Singapore-based company's digital transformation journey. The joint venture -- in which Infosys Consulting (Infosys subsidiary) holds 60 per cent stake -- will be headquartered in Singapore, Infosys said in a statement. The remaining stake will be held by Temasek through Franklin Investments, it said adding that the agreement was signed by the parties last night and is effective immediately.
The JV will integrate teams from Infosys and the operations of Temasek's wholly owned subsidiary - Trusted Source - that currently delivers IT services to Temasek and a number of other clients. As part of the transaction, more than 200 employees and contractors from Trusted Source will be part of the JV, in addition to Infosys staff who will join over time, the statement said. Infosys, in a regulatory filing, said the consideration of investment is "up to SGD 12 million excluding adjustments for working capital, cash and net debt on closing".
"Infosys gains significant capacity in terms of workforce as it focuses on strengthening its footprint in Southeast Asia, while Temasek will see a rapid enhancement of its IT services through the augmented capabilities of the joint venture entity," the statement said. Trusted Source will provide Temasek and its other clients in the region solutions and technologies across cloud, data and analytics, cybersecurity, digital experiences and artificial intelligence and automation among others.
"The joint venture will support Temasek's digital transformation journey, managing a complex Cloud migration program that will enable Temasek to host its applications on a cloud platform," the statement said. Infosys and Temasek have named Shveta Arora, Vice President at Infosys, as the Chief Executive Officer of the JV. "Our joint venture with Temasek will accelerate our efforts in the region, enhancing our existing presence, as we help clients navigate the next journey in their business transformation," Mohit Joshi, President, Infosys said. The partnership will help unlock new capabilities and technology platforms that help Temasek, Jon Allaway, Chief Technology Officer at Temasek, said.