India IT consulting giant Infosys is acquiring Simplus, a Salesforce-focused cloud consulting partner with locations in the United States and Australia. The deal's value is $200 million to $250 million, depending on Simplus's ability to meet certain financial targets.
This is M&A deal Number 105 that ChannelE2E has covered so far in 2020. See the complete M&A deal list here. Simplus was venture-backed and raised $20 million in Series C funding in February 2019.
Simplus revenue was $67.1 million for the fiscal year ending January 31, 2020. So the deal's valuation is anywhere from 3X to times 3.7X annual revenue.
Simplus has completed more than 4,500 Salesforce-related projects, and the company's customer satisfaction ratings rank among the top 1 percent of Salesforce partners, the consulting firm says.
Simplus CEO Ryan Westwood and all of the current executive team will continue forward in this deal, which we anticipate will be completed within the next 30 days, the firms say.
Infosys has been active in the Salesforce service provider ecosystem -- acquiring Europe's Fluido for $76 million in September 2018. The Simplus and Fluido deals further elevate "Infosys’ position as an end-to-end Salesforce enterprise cloud solutions and services provider, offering clients unparalleled capabilities for cloud-first digital transformation," the buyer asserts.
Infosys Acquires Simplus: Executive Perspectives
In a prepared statement about the deal, Pravin Rao, COO of Infosys, said:
"The acquisition reaffirms our continuous endeavor to strengthen our strategy of scaling our Agile Digital and cloud-first digital transformation capabilities. This acquisition is key to staying relevant to the digital priorities of our clients and demonstrates our commitment to the Salesforce ecosystem. The strategic combination of scalable and agile global delivery capabilities of Simplus complements our effort to help global enterprises to transform their businesses. We are excited to welcome Simplus and its leadership team into the Infosys family."
Added Ravi Kumar, president of Infosys:
added, "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. With this strong addition to our portfolio, we look forward to unlocking additional value for our clients."
Ryan Westwood, CEO & co-founder, Simplus, asserted:
"We are thrilled to be partnering with the Infosys team. We have viewed this partnership from a culture-first lens from the beginning, and we believe that the alignment of our company values, and the preservation of our company DNA will allow us to accelerate growth and together become the strongest and most respected partner in the Salesforce ecosystem."
Isaac Westwood, COO & Co-Founder, Simplus, noted:
“Infosys has incredible global scale and breadth, and joining forces gives us a powerful value proposition to enable global digital transformations.”
Salesforce Partner Mergers and Acquisitions
This is the sixth Salesforce partner merger or acquisition that we've seen so far this year. The other deals involved:
Also, Simplus itself has been in acquisition mode -- buying such firms as Cloud Partners and Square Peg.
Track a list of Salesforce partner mergers & acquisitions here.
