The shareholders of Portland Group have agreed to sell the company to Infosys BPO Limited (“Infosys”). Infosys is a global IT and Business Services organisation founded in India, it has a market capitalisation of around $30B, revenues around $6.6B and services many of the world’s leading companies in 30 countries. Infosys employs over 2,000 people in Australia and has over 1,000 staff in their sourcing and procurement practice globally.
The sale transaction was completed earlier this month and Infosys now owns 100% of Portland Group. Portland Group will retain its name and identity and will continue to operate as an independent company. Our current management team will all remain in place and continue to lead the business. We are completely committed to taking the business forward under Infosys’ ownership and continuing the success we have had over the last decade.
From a sourcing and procurement perspective, the combination of Portland Group and Infosys will provide Portland clients with a highly compelling proposition that does not currently exist in Australia. At Portland Group we have always sought to increase our capabilities and capacity in order to deliver value for our clients. Our recent focus has been on increasing our capabilities by developing deep category and functional procurement expertise in areas such as Logistics, Property, IT, Marketing, Procure to Pay and Engineering and Capital Projects. Through joining with Infosys we will further expand our capabilities to include a lower cost global footprint, increased technology enablement of our services and access to transactional procurement services that we do not currently provide. This will allow us to offer our customers a truly integrated and globally competitive solution to deliver procurement benefits in the most effective and efficient way possible.
In addition to sourcing and procurement capabilities, Infosys will also allow us to expand our supply chain management services where we will leverage Infosys offerings in supporting supply chain processes (e.g. supply chain visibility, inventory management and logistics optimisation). We believe this will also allow us to provide our clients with a suite of innovative service offerings to improve the efficiency of their supply chains.
Being part of Infosys will also provide us a greater ability to scale our services, this will further improve our ability to service many companies who are tackling large infrastructure and resource projects in a highly constrained environment for procurement and supply chain management skills.
Infosys has not acquired the Portland Global Sourcing business based in Shanghai, this entity has been acquired by the management team in China who are continuing to run this business under a new name.
Infosys Portland is a subsidiary of Infosys BPO Ltd., a part of Infosys Ltd. Our mission is to make our clients successful by increasing their profitability through procurement and supply chain improvements. We are unique in providing services to improve efficiency and effectiveness across our clients’ complete procurement and supply chain functions, ranging from innovative, high-end strategy through to effective, low-cost operations and transactional processing. The resulting transformational benefits for clients include lower costs, reduced risk and improved service from client suppliers.
Infosys BPO Ltd. ( www.infosysbpm.com ), the business process outsourcing subsidiary of Infosys Ltd., was set up in April 2002. Infosys BPO focuses on integrated end-to-end outsourcing and delivers transformational benefits to its clients through reduced costs, on-going productivity improvements, and process reengineering. Infosys BPO operates in India, Poland, the Czech Republic, the Netherlands, South Africa, Brazil, Mexico, Costa Rica, the United States, China, the Philippines, Japan and Australia, and as of December 31, 2013, employed 27,894 people. It closed FY 2012-13 with revenues of $583.1 million.
Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, fluctuations in foreign exchange rates, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal or expiration of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorised use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2013 and on Form 6-K for the quarter ended December 31, 2013. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company's filings with the Securities and Exchange Commission and our reports to shareholders. The company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the company unless it is required by law.