IT services giant Infosys Ltd opened a gap up after the company won €1.5bn worth deal from global converged broadband, video, and mobile communications services provider Liberty Global.
The share opened at ₹1,411, up 1.44% from the previous session's close of ₹1,393.65 on the BSE. The current share price, however, is lower than the 52-week-high of ₹1,672.45 achieved on December 12, 2022. At the current share price, the company's market cap stands at ₹5,86,858.88 crore.
The Infosys shares have surged 1.40% in the past five days, but it trading 0.43% down on one month and 11.57% down on a six-month basis. In the year-to-date period and one year, Infosys stock has seen a 7.34% and 11.53% decline, respectively.
British-Dutch-American company Liberty Global, in its efforts to scale Liberty Global's cutting-edge digital entertainment and connectivity platforms, has tied up with Infosys to build and operate Liberty Global's Horizon entertainment and connectivity platforms.
Infosys says it will deploy cutting-edge technologies such as Infosys Topaz AI to offer new features, capabilities, and efficiencies for Liberty Global. The companies have signed an initial five-year agreement, with an option to extend to 8 years and beyond. "Infosys will provide services to Liberty Global estimated at €1.5 billion over the initial five-year term and at €2.3bn if the contract is extended to 8 years."
The collaboration allows Liberty Global to realise run-rate savings in excess of €100 million per annum, inclusive of other savings and technology investments, the Infosys statement adds.
In addition, Liberty Global will licence these platforms to Infosys so the digital services provider can offer services to new operators and markets outside the Liberty Global family. "Liberty Global will continue to control product roadmaps and retain all intellectual property for the Horizon entertainment and connectivity platforms."
The expanded partnership will additionally create career opportunities for over 400 Liberty Global employees joining Infosys, who will transition to Infosys. They will benefit from global business exposure and will help shape Infosys' communications, media, and entertainment businesses and add to its engineering capabilities.
Mike Fries, CEO, Liberty Global, says strengthening and expanding the collaboration with Infosys gives it best-in-class solutions new scale, with the ability to reach many more markets and help customers. "And while it produces substantial central cost savings over time, it also provides excellent opportunities for our talent to grow their specialist skills and nurture impactful careers with Infosys."
Salil Parekh, CEO & MD, Infosys, says the company will bring Infosys Topaz to enable transformative AI-first capabilities to complement the cloud-first digital foundation it has laid for Liberty Global using Infosys Cobalt. "The strength of our global operations will also help the business scale across markets. As we prepare to welcome new talent and teams of innovators to Infosys, we look forward to building on the trust that Liberty Global has in us."
The software services giant Infosys had launched Topaz — an AI-first set of services, solutions, and platforms using generative artificial intelligence (AI) technologies – in May 2023. Topaz leverages Infosys' applied AI framework to build an AI-first core that has over 12,000 AI use cases, more than 150 pre-trained AI models and over 10 AI platforms.
The IT services major Infosys recorded lower than expected Q1 earnings as profit grew 10.9% to ₹5,945 crore vs ₹5,362 crore in the year-ago period.
