Infosys’ $560 million bet on two US tech firms is its all-time highest M&A spend in a year

Infosys Ltd’s announcement late Wednesday to buy two US-based tech services firms for $560 million takes its acquisition spend in a fiscal to an all-time high, reflecting the pressing need for new capabilities as automation tools upend India’s tech sector.The country’s second-largest information technology (IT) services company said it will spend up to $465 million to buy Optimum Healthcare IT, a Florida IT services and consulting firm.On the same day, it announced the acquisition of Stratus, a New Jersey-based tech services provider to the insurance sector, for up to $95 million.Both deals are in cash and are expected to close by June. The payment includes upfront amounts and earn-outs but excludes management incentives and retention bonuses.The acquisitions will add $319 million in incremental revenue to Infosys, including $276 million from Optimum Healthcare and $43 million from Stratus, making up almost 45% of Infosys’ incremental revenue last year.Infosys ended last year with $19.28 billion in revenue, up 3.85% on a yearly basis.

It expects to end the current fiscal with 3-3.5% growth in constant currency terms. Constant currency does not account for currency fluctuations.These buyouts take to five the number acquisitions Infosys has made this fiscal.

In April last year, it bought MRE Consulting in the US and Australian cybersecurity firm, The Missing Link, for about $98 million combined. Three months later, it acquired Australia's Versent Group for over $150 million.The Wednesday's deals takes the Indian tech services bellwether's total spending on acquisitions in FY26 to $808 million, or ₹7,500 crore — the highest spent on acquisitions among the country’s five largest IT services companies including Tata