Infosys completes acquisition of Danske Bank’s IT centre in India; stock down

Infosys shares remain in focus today after the IT major completed the acquisition of Danske Bank’s IT centre in India. The acquisition is part of Infosys’ strategy to expand its footprint and reinforces commitment to the Nordics countries, a strategic market for the company. The Nordic region consists of Denmark, Norway, Sweden, Finland, and Iceland, as well as the Faroe Islands, Greenland, and Aland.

Early today, Infosys shares opened flat at ₹1,443 against the previous closing price of ₹1,443.05 on the BSE. In the first hour of trade so far, the IT heavyweight moved in a narrow range, hitting high and low of ₹1,448.90 and ₹1,435.35, respectively. At the time of reporting, the IT stock was trading 0.36% lower at ₹1,437.85 levels with a market capitalisation of ₹5.96 lakh crore.

Infosys shares touched a 52-week high of ₹1,672.45 on December 1, 2022, and a 52-week low of ₹1,215.45 on April 25, 2023. The stock has given negative returns in the last one year, falling 1.5% in a 12-month period, while it dropped 5.5% in the calendar year 2023. In the past six months, the stock has fallen over 4%, while it gained 4.5% in a month and 1.5% in a week.

In June this year, Denmark-headquartered Danske Bank selected Infosys as a strategic partner to accelerate the bank’s digital transformation initiatives with speed and scale. As part of this collaboration, Infosys signed a deal to acquire Danske Bank’s IT centre in India, where over 1,400 professionals are employed.

“Infosys is excited about this collaboration with Danske Bank and welcomes employees joining our team as part of this journey,” Infosys said in a BSE filing on September 1.

Danske Bank’s IT centre in India employs over 1,400 professionals. With its global expertise and industry solutions, Infosys will accelerate the bank’s digital agenda by significantly enhancing their IT operations and capabilities, powered by Infosys Topaz, an AI-first set of services, solutions and platforms, experience design, and services that support operations, the release noted.

“This collaboration reaffirms our commitment to Nordics, a strategic market for Infosys, and underlines Infosys’ leadership position and expertise in Financial Services across Europe,” it added.

Danske Bank provides banking services to personal and business customers, as well as large corporate and institutional customers. In a bid to accelerate the bank’s technology transformation, optimise their access to talent and capabilities, and to further develop customer-facing digital solutions, Danske Bank chose Infosys as its strategic partner. This collaboration intended to help Danske Bank achieve its strategic priorities towards better customer experiences, operational excellence, and a modernised technology landscape, powered by next-gen solutions.

Nordics is a strategic market for Infosys and this collaboration aims to further enhance its commitment to the region. Infosys had acquired BASE Life Science in Denmark and Fluido in Finland, and recently opened a new proximity centre in Gothenburg, Sweden and Oslo, Norway. With this relationship with Danske Bank, Infosys has further enhanced its localisation strategy in the Nordics.

Earlier in March this year, Infosys was recognised as one of the top service providers in the Nordics across key performance indicators on service delivery quality, account management quality, price level and transformative innovation, as per Whitelane Research and PA Consulting’s 2023 IT Sourcing Study. It achieved a notable rise in overall ranking in the Nordics with a customer satisfaction score of 81% as compared to the industry average of 73%.

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