Tech giant Infosys set to acquire a 75% share in Telstra's subsidiary for a staggering $153 million.
Infosys Acquires Majority Stake in Telstra's Versent Group for $153 Million
In a strategic move to expand its operations in Australia, Indian IT services company Infosys has agreed to buy a 75% stake in Telstra's Versent Group for A$233.3 million ($153 million). The deal, which involves acquiring a wholly owned unit of Australia's Telstra Group, is expected to close by the second half of fiscal 2026, subject to approval from the Foreign Investment Review Board of Australia and the Australian Competition and Consumer Commission.
Versent Group, a leading provider of cloud services, currently serves various sectors in Australia, including finance, energy, utilities, government, and education. This acquisition will significantly enhance Infosys' local presence in Australia, bringing around 650 cloud and digital specialists on board.
The strategic purpose of this acquisition is to combine Infosys’ global AI capabilities, Telstra’s strong connectivity infrastructure, and Versent’s local engineering expertise. The joint venture aims to accelerate AI-powered cloud modernization, digital transformation, and cybersecurity programs in key Australian sectors like government, education, finance, energy, and utilities.
This move is expected to accelerate AI-enabled transformation programs for Australian organizations through Infosys’ AI stack (Topaz) and cloud portfolio (Cobalt), enhanced by cybersecurity solutions from The Missing Link. It will also strengthen Infosys' footprint and market share in Australia by serving large institutional clients across multiple sectors with cloud modernization and data governance services.
The partnership aligns with Telstra's Connected Future 30 strategy, where Telstra focuses on core connectivity by divesting from cloud services but retains a 25% minority stake to stay engaged with enterprise digital outcomes tied to its networks. This move could potentially increase demand for Telstra's secure, reliable connectivity as AI adoption grows in the region.
The deal deepens the strategic partnership between Infosys and Telstra, reflecting mutual confidence in combined growth and innovation potential. U.S.-listed shares of Infosys have risen after the news, indicating a positive market response to this strategic move. The exchange rate is 1.5279 Australian dollars to 1 US dollar.
This acquisition marks a significant step in Infosys’ global AI and cloud expansion strategy. It is expected to contribute to the company's growth and innovation in the Australian market, while also enhancing its AI and cloud capabilities for the benefit of its clients.
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