Infosys is acquiring Simplus for $250M to grow its Salesforce consulting arm

Ron Miller
BANGALORE, INDIA: Employees walk inside the campus of Indian software giant Infosys Technologies Ltd. headquarters in Bangalore 13 April 2004. Infosys anounced a full year ended March 2004, net profit jump of 28 percent as it became the country's first listed IT company to breach the one-billion-dollar revenue mark. Infosys Technologies, the second-largest software exporter in India, said net profit rose to 12.4 billion rupees in the year to March from 9.6 billion rupees a year earlier on revenue that climbed 30 percent to 47.6 billion rupees (1.1 Billion US Dollars). AFP PHOTO/Indranil MUKHERJEE (Photo credit should read INDRANIL MUKHERJEE/AFP via Getty Images)

Infosys is a huge consulting organization based in India, which works with clients as they implement complex software integrations. Today, the company announced it was buying Simplus, a Salesforce integration consultant, for $250 million.

The company, which is based in Salt Lake City, Utah, launched in 2014 and has raised almost $50 million, according to Crunchbase data. It brings a wide range of Salesforce consulting, training and integration services along with general Salesforce expertise, which Infosys hopes to put to work.

The acquisition follows the purchase of Fluido, another Salesforce consulting shop, in 2018. The moves suggest that Infosys wants to build deeper expertise around Salesforce and make that a key piece of its consulting operations moving forward.

Brent Leary, a CRM industry veteran, who is owner at CRM Essentials, says that Simplus is well-positioned in the Salesforce ecosystem to capture lucrative cloud integration services, and it should help expand Infosys's Salesforce consulting arm. "By acquiring Simplus, it allows Infosys to grab more market share, while extending Salesforce capabilities to offer existing clients," Leary told TechCrunch.

Ravi Kumar, president at Infosys, sees it in similar terms. "Simplus will be a valuable addition to the Infosys family. Complementing our industry knowledge and existing Salesforce footprint with their strong presence in key markets, deep Salesforce consulting and advisory expertise will help accelerate the transformation journey of incumbent companies," Kumar said in a statement.

Holger Mueller, an analyst at Constellation Research, says Simplus should especially help in the area of Quote-to-Cash, that period after the sale when quotes are shared, contracts are signed and cash is collected on the sale. "It creates the opportunity for Infosys to break out of the vendor services silos and connect its Salesforce services with its ERP services (SAP, Oracle)," he said.

The deal is expected to close in Infosys's fiscal 2020 fourth quarter. Per usual, it is subject to standard regulatory approval.