7/31/2019 Lodestone Buyout_ Has Infosys Paid a Tad More in Return Compared With HCL Tech-Axon Deal_ - Economic Times

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7/31/2019 Lodestone Buyout_ Has Infosys Paid a Tad More in Return Compared With HCL Tech-Axon Deal_ - Economic Times

2/32/3rticles.economictimes.indiatimes.com//33762935_1_lodestone-infosys-bpo-ankita-somani

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according to industry watchers. This compares with a near 30% operating margin of Infosys.

"The margin gap shows that Infosys may have increased its focus on generating more volumes rather than

simply protecting their profitability," said Dhananjay Sinha, co-head of institutional equities, Emkay Global

Financial Services.

However, Lodestone's lower margins will not impact the parent's profitability much due to the smaller size of

operations. But growing concerns over the deteriorating economic scenario in the Eurozone may create some

challenges for Infosys once it gets ready to cross-sell solutions to Lodestone's existing clients. The deal may

prove to be a good long-term strategy without much influence or impact on the near term fortunes of the

erstwhile IT bellwether.

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Readers' opinions (16)

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12 Sep, 2012 01:10 AM

lmcisgone(europe)

It is not m entioned in the article at all, but pleas e note buying a cons ulting company is a bit extraordinary - you

buy only people. Some will say you also buy a brand (but Lodestone was not branded in the m arket too much).

Someone will say you buy the clients (but the client relationship is based on the people - partners relationships).

So to be hones t - Infosys boug ht people who did not want to be bought. There are things that cannot be

meas ured. There is injured proud of Swiss consultants who do not want to be governed by Indian managers.

Lets make i t clear: the main beneficient of the deal is not Lodestone, not Infosys. It is Ronald Hafner who s old

the overinvested company for relatively good money (having in mind 2013 will be rather tough in Europe). So the

question for the reader reflection: how do you think Infosys convinces people from Lodestone to s tay with them?

You will not buy people loyalty.

12 Sep, 2012 08:39 AM

Hari(Hyderabad) replies to lmcisgone

Pls note that, per the agreement Infy will pay one third of the purchase consideration after 3 years

if the key employees of Lodestone are retained. Hence your question reg (key) people staying is

already answered. Also pls note branding is for the market, Lodestone market is Europe,

particularly continental Europe and Lodestone had a respected brand i n this market.

11 Sep, 2012 07:31 PM

Guest(India)

7/31/2019 Lodestone Buyout_ Has Infosys Paid a Tad More in Return Compared With HCL Tech-Axon Deal_ - Economic Times

3/33/3rticles.economictimes.indiatimes.com//33762935_1_lodestone-infosys-bpo-ankita-somani

201 2 Bennett, Coleman & Co. Ltd. All rights reserv ed Index by Keyw ord|Index by Date

Infosys will never throw away money on worthless deals . Please do not compare deals m ade by companies this

way. The basic flavours of these deals are different and are need bas ed

11 Sep, 2012 06:30 AM

Ra(US)

Infosys i s a s corrupt as 2G scam. They take all the tax exemptions from goverment and provide nothing for the

people. This fake company should be s hut down.

12 Sep, 2012 11:22 AM

Indian(Mysore) replies to Ra

lol..did this article mention about anything tax exemption?? and for your information.. Infosys is the

mos t ethic based com pany than any other Indian Service company! Did you ever listen people

saying Infy balance sheet is goofed-up, ex: satyam? Did you even hear about Infy doing lobbying

with people like Nira Radia, ex : tata, Did you ever hear, Infosys giving pink slips, ex: IBM, etc??

And you talk about 2G scam !I pity you..

11 Sep, 2012 12:42 PM

Rahul(Pune) replies to Ra

Exemptions r a part of govt. policies to attract investments in a state. Any eligible org may avail the

benefits. No IT org is given any undue favours. On the contrary todays ET publishes a news going

'Government ma y dilute rules to s ave Kingfisher Airlines', which in my opinion s hould be extended

to the entire ailing aviation sector. Merely calling an indus try behemoth corrupt is in a bad tas te.

11 Sep, 2012 12:11 PM

pal(location) replies to Ra

absolutely correct.

11 Sep, 2012 09:29 AM

rsm(Blore) replies to Ra

Bird brain, How is your job in KFC ?

11 Sep, 2012 12:55 PM

Rahul(Pune) replies to rsm

Sorry pal i m not in KFC. Purely applying common s ense here.

11 Sep, 2012 07:15 AM

aam admi(India) replies to Ra

AGREE

11 Sep, 2012 04:50 AM

harry(gurgaon)

the negative ET at work again....infosys paid a tad more...you must have access to som ething special ..ha ha

...look at the valuations they have paid much lower for this buy

11 Sep, 2012 04:03 AM

Ra(US)

Infosys i s a fake company ! Govt . Should bus t this company and s hut it down.

11 Sep, 2012 04:48 AM

harry(gurgaon) replies to Ra

you should be s ent to mental asylum first ...pls urgently see a doc

11 Sep, 2012 12:29 PM

pal(loc) replies to harry

Lyndia is a 24 7 asylum...we will l ive here...and will make like us

11 Sep, 2012 07:15 AM

aam admi(India) replies to harry

You need to seen one first.

11 Sep, 2012 12:14 PMpal(location) replies to aam admi

he is harry potti..

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