Morgan Stanley has taken a cautious view on Infosys’ recently announced US acquisitions of Optimum Healthcare IT and Stratus Global, maintaining an Equal‑weight rating and keeping its target price unchanged at Rs 1,760. While the deals strengthen Infosys’ footprint in the healthcare IT segment, the brokerage believes their near‑term financial impact remains modest. Infosys shares traded mildly higher on Friday morning, with the stock quoting at Rs 1,287.20 as of 9:30 AM gaining Rs 8.10 or 0.63 per cent.
Infosys’ plan to acquire Optimum Healthcare IT for about USD 465 million and Stratus for up to USD 95 million is expected to add a combined 1.2 per cent to revenue by FY27, according to Morgan Stanley. However, the brokerage said the transactions are likely to be earnings‑neutral to mildly dilutive, suggesting that strategic benefits may outweigh immediate financial gains, but without materially altering the stock’s risk‑reward profile at current levels.
Infosys on Wednesday informed that it has signed agreements to acquire two US-based firms, Optimum Healthcare IT and Stratus. The company is set to acquire Optimum Healthcare IT for USD 465 million and Stratus for USD 95 million, strengthening its presence in the healthcare IT sector.
Salil Parekh, Chief Executive Officer, Infosys, said, “Optimum Healthcare IT has established a strong position in the healthcare sector by consistently delivering measurable outcomes through deep domain expertise and trusted client engagements.
Gene Scheurer, Chief Executive Officer and Co-Founder of Optimum Healthcare IT, said, “With Infosys’ long-term investment and global scale behind us, we’re positioned to accelerate AI and digital-led growth and expand what we can deliver while remaining anchored in the values, service model, and healthcare focus our clients count on.”
Consideration: USD 465 mn (Rs 4,357 cr)
Last 3 years’ Revenues (Fiscal year ending December 31st):
Consideration: USD 95 mn (Rs 890 cr)
Last 3 years’ Revenues (Fiscal year ending December 31st)
Optimum healthcare: Synergies
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
