Infosys: Infosys to acquire engineering R&D services provider in-tech for $480 million

IT major Infosys on Thursday said it is acquiring in-tech, an engineering R&D services provider focused on the German automotive industry. The cost of the acquisition is pegged at $480 million (450 million euros), the firm said in a filing with BSE.

This strategic investment further strengthens Infosys’ engineering R&D capabilities and will aid global clients to navigate their digital engineering journey, the company said in the statement. The acquisition is expected to be closed during the first half of fiscal 2025, subject to regulatory approvals.

IT services companies are increasingly acquiring ER&D firms to boost their topline. IT firm HCLTech last year acquired a 100% equity stake in ASAP group, a German automotive engineering services provider.

Germany-headquartered in-tech shapes digitisation in the automotive, rail transport and smart industry sectors. It develops solutions pertaining to e-mobility, connected and autonomous driving, electric vehicles, off-road vehicles and railroad.

in-tech brings to Infosys marquee German original equipment manufacturers (OEMs) deep client relationships, and an extensive industry expertise with a multidisciplinary team of 2200 people across locations in Germany, Austria, China, UK, and nearshore locations in Czech Republic, Romania, Spain and India.

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 startups, coupled with in-tech’ engineering prowess presents a differentiated value to our clients bringing high quality innovative products to the market faster.”

Tobias Wagner, in-tech CEO, said, “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. Together we now cover the entire end-to-end process, a step that is crucial to fully meet our customers’ needs. With access to more talent and expertise, we gain incredible strength and scale in our delivery capability.”