Infosys shares in focus on $1.6 billion deal with Liberty Global

Shares of Infosys will be in focus on Wednesday's trade after the It major bagged an order worth $1.6 billion to evolve and scale Liberty Global's digital entertainment and connectivity platforms. Infosys has been supporting Liberty Global's technology services platforms since February 2020.

The parties have entered into an initial 5-year agreement, with an option to extend to 8 years and beyond. Infosys will provide services to Liberty Global estimated at 1.5 billion euros over the initial 5-year term and at 2.3 billion euros if the contract is extended to eight years.

The collaboration allows Liberty Global to realise run-rate savings in excess of 100 million euros per annum, inclusive of other savings and technology investments.

Liberty Global is licensing these platforms to Infosys so the digital services provider can offer best-in-class services to new operators and new markets outside the Liberty Global family, Infosys said.

"This will potentially enable millions of new customers, around the world, to experience next-generation digital entertainment and connectivity services through Horizon for the first time. Liberty Global will continue to control product roadmaps and retain all intellectual property for the Horizon entertainment and connectivity platforms," Infosys said.

Anand Swaminathan, Executive Vice President – Global Head of Communications, Media & Technology, Infosys, said Infosys’ collaboration with Liberty Global will deliver AI-powered entertainment solutions-as-a-service that will bring great flexibility to 10 million Liberty Global customers. "We will also offer these platforms as a powerful choice to other telecom clients," he said.

The expanded collaboration is seen creating career opportunities for more than 400 Liberty Global employees joining Infosys, who will benefit from its global scale and reach.

Under the terms of the business arrangements, senior executives and technology teams from Liberty Global's Product, Technology Development Service Delivery Group, Network & Shared Operations and Security Groups will transition to Infosys.

"They will benefit from global business exposure, scale, and wider career advancement opportunities. They will also play an important role in shaping the future of Infosys' communications, media

and entertainment business and add significantly to its engineering capabilities," Infosys said.