Infosys Ltd, which has been on a strategic acquisition spree in this financial year, has struck two new deals. On Wednesday, the IT giant said it will acquire US-based Optimum Healthcare IT for up to $465 million.
This would strengthen its foothold in the healthcare segment, which currently contributes about 7% to Infosys’ overall revenue. Optimum is a provider of healthcare IT and digital transformation solutions. It specialises in technology-driven consulting, implementation, and managed services for hospitals and health systems.
Infosys is also acquiring Stratus Global LLC for up to $95 million to deepen its footprint in the insurance sector. Stratus has a strong Gguidewire and property and casualty (P&C) insurance platform.
“Capability-based acquisition remains one of the strategic focus areas for Infosys, and these acquisitions appear to be in line with its strategy,” said a JM Financial Institutional Securities report dated 26 March. MRE Consulting, The Missing Link and Versent are the other acquisitions announced by Infosys in FY26 so far.
The latest acquisitions would also deepen the integration of Infosys’ AI (Topaz) and cloud (Cobalt) platforms into domain-specific workflows. Both these acquisitions are expected to close in Q1FY27, subject to regulatory approvals. The two acquisitions and Versent (which is pending closure due to regulatory approvals) could contribute around 225 basis points to Infosys’s revenue growth in FY27, assuming entire 12 months of contribution, estimates Nomura Global Markets Research.
In FY25, Optimum reported a revenue of $275.9 million and Stratus clocked $42.8 million revenue. However, analysts at Morgan Stanley expect the deals to be neutral to slightly dilutive to earnings on the back of lower EBIT (Earnings before interest and tax) margins at the acquired entities and amortisation costs.
Close competitor Tata Consultancy Services Ltd also bought three companies to boost its artificial intelligence (AI), and cloud capabilities. Mergers and acquisitions remains a key priority for Indian IT companies and will likely step up in the current macro environment; acquisitions likely to fill portfolio gaps or strengthen areas in a tough industry environment will be key focus areas, notes JM Financial.
The Indian IT sector is struggling with subdued organic revenue growth. Concerns of AI-led disruption to traditional IT business models have weighed heavily on stock performances and earnings outlook.
In this calendar year so far, both the Nifty IT index and Infosys stock are down 21% each. An increased inorganic growth focus could help aid sentiment towards the Infosys stock to a certain extent. But a meaningful turnaround hinges on revenue growth recovery, pick-up in discretionary IT spends and clarity on the actual impact of AI on terminal growth rates.
At its AI Investors Day held in February, Infosys management said that AI is structurally expansionary for Infosys and it is well-poised to tap into new $300- 400 billion AI services opportunity by calendar year 2030.
Infosys generated 5.5% revenue from AI in Q3FY26. For FY26 Infosys has guided for 3–3.5% year-on-year constant currency revenue growth, implying an ask of -1.6%/+0.2% at the lower end/upper end for Q4FY26, with the lower end factoring in elevated macroeconomic uncertainty.