Infosys, the country's second largest software exporter, has loosened its cash rich purse strings and decided to acquire a Zurich-based management consultancy firm, Lodestone for a consideration of CHF 330 million ($350 million).
The acquisition is expected to strengthen Infosys' consulting and systems integration capabilities and will lead to addition of 200 clients in Europe, the company said in a press release.
The transaction is expected to be completed to be October-end.
Lodestone advises international companies on strategy and process optimisation, the release said.
The Infosys stock is trading 1.05 percent higher at Rs 2,522.50 on the BSE following the announcement,
Analysts on CNBC TV18 said the acquisition is in the right direction, but said it is too small.
Analysts and investors have been urging the software exporter to make use of its huge cash pile of around Rs 20,000 crore for acquisition or pay out dividends.