Infosys to acquire ERP software provider Panaya for $200m

Panaya has received $59m in funding so far, and claims to have over 1,000 customers

Indian outsourcing company Infosys is to buy Panaya, an enterprise resource planning software provider, in a deal worth about $200m (£130m).

The transaction is expected to go through before 31 March, subject to customary closing conditions.

Infosys will look to integrate Panaya's CloudQuality Suite with its own technology.

The Suite aims to help end users understand what will break, how to fix breaks and what to test when it comes to delivering changes to software from the likes of SAP, Oracle and Salesforce.

Panaya has received $59m (£38m) in funding to date, according to Crunchbase, and claims to have 1,220 customers in 62 countries, including a third of the Fortune 500.

Vishal Sikka, CEO and MD of Infosys, described the acquisition as "a key step in renewing and differentiating our service lines".

"This will help amplify the potential of our people, freeing us from the drudgery of many repetitive tasks, so we may focus more on the important, strategic challenges faced by our clients," he said.

Infosys is attempting to refresh its strategy to remain competitive in a market which also includes HCL Technologies and Tata Consultancy Services.

The company's back-office unit was embroiled in controversy last year after reportedly overcharging its marquee client, Apple.

The incident led to the departure of several top executives, including the CFO, and the resignation of the firm's BPO division chief.

A company spokesperson admitted at the time that Infosys had taken disciplinary action against employees, despite the financial irregularities not being "material in nature".

The Economic Times suggested that the axe will fall on six more employees as a result of the overcharging.