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Infosys announces joint venture with Hitachi, Panasonic, Pasona in Japan

The consideration for the 81 per cent stake, subject to closing adjustments, is JPY 2,762 million

Press Trust of India  |  New Delhi 

The logo of Infosys is pictured inside the company's headquarters in Bengaluru | Photo: Reuters

Friday said it has formed a (JV) with Hitachi, Corporation and to strengthen its presence in the Japanese market.

As part of the agreement, will acquire 81 per cent of the shareholding in Procurement Service Co, Hitachi's fully owned subsidiary, said in a statement.

Hitachi, and will be minority shareholders of the entity, it added.

The consideration for the 81 per cent stake, subject to closing adjustments, is JPY 2,762 million (approx Rs 1.74 billion).

"As part of the transaction, will acquire an 81 per cent stake in from by way of an acquisition of

existing shares," Infosys said in a regulatory filing.

will transfer 2 per cent each to and Pasona, and will hold the remaining 15 per cent, it added.

The transaction is expected to close by April 1, 2019, subject to customary closing conditions, Infosys said.

"The transaction is in alignment with Infosys' strategy to strengthen its presence in and invest in local capabilities to serve the local and global needs of Japanese corporations," it said.

Hitachi Procurement, currently, handles indirect materials purchasing functions for

"...iconic coming together, will accelerate process transformation leveraging digital procurement platforms for the local and global needs of Japanese corporations," the statement said.

Infosys will bring its expertise in procurement processes, consulting, analytics and digital technologies such as (AI) and Robotic Process Automation (RPA) to the venture.

Combined with Hitachi and Panasonic's knowledge of their procurement functions and local teams, and Pasona's human capital and BPM networks in Japan, the entity will provide differentiated, end-to-end, efficient and high value procurement capabilities to corporations, the statement said.

"This JV 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," Infosys said.

Infosys and Head (Corporate Strategy) said is a strategic market for the company.

"This transaction is a significant demonstration of our commitment to building a local presence in the region in order to partner with our Japanese clients and accelerate their digital journey," he added.

First Published: Fri, December 14 2018. 11:35 IST