IT services stock Infosys (INFY), has announced a definitive agreement to acquire GuideVision, an enterprise service management consultancy that specializes in strategic advisory and support on the ServiceNow platform in Europe.
Shares in INFY are rising 4% in Monday’s pre-market trading.
GuideVision’s end-to-end offerings, including SnowMirror – a proprietary smart data replication tool for ServiceNow instances – enables over 100 enterprise clients to simplify complex business and IT processes.
According to INFY, GuideVision’s training academy and nearshore capabilities in Czech Republic, Hungary, Poland, and presence in Germany and Finland will strengthen Infosys’ ServiceNow capabilities for its clients in Europe.
ServiceNow (NOW) is one of the fastest growing enterprise software companies, and is becoming an ‘essential service’ and workflow standard for organizations, says Infosys.
“Our recently announced Infosys Cobalt portfolio has a large repository of ServiceNow Industry Cloud solutions like ESM Café, and this will now be bolstered by GuideVision’s SnowMirror suite of Industry templates” commented INFY’s Narsimha Rao Mannepalli.
The acquisition is expected to close during the third quarter of fiscal 2021, subject to customary closing conditions.
INFY has climbed 24% year-to-date, and the stock scores a cautiously optimistic Moderate Buy Street consensus. That’s with analysts evenly split between hold and buy ratings. However the average analyst price target of $12 indicates shares could pull back from current levels.
Most recently, BMO Capital’s Keith Bachman reiterated his hold rating on INFY while boosting his price target from $11 to $13. Bachman told investors: “We believe that we are getting closer to a bottom in run rate during the June Q, even as we are generally lowering our near-term estimates, albeit modestly.”
“At this juncture, we are not changing our ratings on Genpact, Infosys, and Cognizant shares, and all remain Market Perform rated, since we still believe that uncertainty remains in regards to demand trends in 2H20, though our bias is positive on the stocks” he explained. (See INFY stock analysis on TipRanks).
Related News:
Laureate Education Soars 9% On Walden University Deal
Buffett’s Berkshire Divests Shares In Liberty Global, Axalta Coating
Nestlé Launches $2.6B Tender Offer For Aimmune Therapeutics
