Infosys may acquire Thomson Reuters' healthcare business

Infosys Technologies, India's second-largest software exporter, is close to acquiring Thomson Reuters' healthcare business for $700-$750 million, Business Standard newspaper today reported, citing sources close to the development.

Infosys, which had Rs16,969 crore ($3.8 billion) in cash as of 30 June 2011, is leading the race to buy the business and an announcement is expected soon, the newspaper reported.

New York-based Thomson Reuters had said in June that it plans to sell its healthcare business, which supplies healthcare data and analysis to companies, government agencies and health care professionals.

Thomson Reuters healthcare unit had revenue of about $450 million in 2010 and $220 million in the quarter ended 31 March 2011.

Analysts see this as Infosys adding a new 'vertical' to its business - public services and healthcare - an area where it has not yet ventured, though its software competitor Cognizant already has a strong presence in this field.

If the buyout goes through, it will be the biggest acquisition in Infosys history. Its acquisitions in the past, like McCamish and Expert Information Systems, were worth under $50 million. The last time Infosys made a bid for a buyout was for Axon, which was eventually acquired by rival HCL.

Last month, newly appointed chairman K V Kamath reassured shareholders that Infosys, which has appeared somewhat unsettled in recent months, will embrace change wholeheartedly while preserving the ethos of the company's founder and chairman emeritus, N R Narayana Murthy.

Kamath had suggested a new openness to acquisitions, re-orientation of strategy and radical innovations for productivity.