Global software major Infosys on Friday said it has formed a joint venture (JV) with Hitachi Ltd, Panasonic Corp and Pasona Inc to enhance its presence in Japan.
"The company will acquire 81 per cent equity stake in Hitachi's subsidiary -- Hitachi Procurement Service Co Ltd, in which Panasonic and Pasona will be minority shareholders," said the city-based IT major in a statement in Bengaluru.
In a regulatory filing on the BSE, the company said its Singapore-based Infosys Consulting Pte Ltd subsidiary entered into an agreement with the three to buy the majority stake (81 per cent) in all-cash deal for $24 million (Rs 175 crore) on or before April 1, 2019.
"Hitachi will transfer two per cent each to Panasonic and Pasona and hold the remaining 15 per cent," said the filing.
The Tokyo-based JV will help clients navigate their digital journey and accelerate business process transformation by leveraging digital procurement platforms.
"The joint entity will accelerate business process transformation leveraging digital procurement platforms for the local and global needs of Japanese corporations," said the statement.
The $11-billion IT behemoth will use its global expertise in procurement processes, consulting, analytics and digital technologies, including artificial intelligence (AI) and Robotic Process Automation (RPA) to the venture.
The JV will offer differentiated, end-to-end and high value procurement capabilities to corporations, with the expertise of Hitachi and Panasonic in procurement functions and Pasona's human capital and business process management (BPM) networks.
"The JV will help Japanese firms transform procurement processes using digital platforms, with the combined power of our procurement expertise, technology and local skills," said Infosys President Ravi Kumar.
As Japan is a strategic market for the outsourcing firm, company's vice-president Deepak Padaki said the investment in the JV demonstrated its commitment to having a strong local presence in the region to partner with its Japanese clients and hasten their digital journey.
"We are building the new partnership, combining strengths and unlocking potential of Infosys, Panasonic, and Pasona," said Hitachi chief procurement officer Masashi Murayama in the statement.
As procurement functions are critical, the partnership will also strengthen Hitachi's global competitiveness with new operating models and delivery at speed enabled by digital technologies.