Infosys Signs Joint Venture with Japanese Hitachi, Panasonic Corp

IT major Infosys has announced the acquisition of majority stake in Hitachi Procurement Service (HPS), a fully owned subsidiary of Hitachi.

For the deal, aimed at setting up a joint venture between Panasonic, Pasona an Hitachi, the Bengaluru-based IT services will acquire 81% stake in HPS for JPY 2,762 million (approximately Rs 174 crore).

Other three companies in the JV will be minority stakeholders, as per the agreement. Hitachi will transfer 2% each to Panasonic and Pasona, and will hold the remaining 15%.

However, according to the company, the final amount paid for the deal depends on the closure of the deal. The transaction is an all cash deal.
The JV is expected to accelerate business process transformation leveraging digital procurement platforms for the local and global needs of Japanese corporations.

Procurement process

“This joint venture will help Japanese corporations transform their procurement processes using next-generation digital platforms, as we bring together the combined power of deep procurement expertise, technology, global expertise and local skills,” Ravi Kumar, President, Infosys said in a statement.

The transaction is expected to close on or before April 1, 2019 and is aimed at helping Infosys strengthen its presence in Japan and invest in local capabilities to serve the local and global needs of Japanese corporations.