Infosys to buy Simplus for $250 million, 10Pearls acquires Zen Cloud
Salesforce partners continue to be prime acquisition targets of other channel players, with IT consultancy Infosys and digital technology service provider 10Pearls this week being the latest buyers.
The Lowdown: Infosys is buying Salesforce Platinum partner Simplus for a reported $250 million, while 10Pearls acquired digital consultancy Zen Cloud Technologies. No financial details were released.
The Details: Having Simplus, a 6-year-old company based in Salt Lake City, in the fold will add to Infosys’ enterprise cloud capabilities and will enable it to expand its reach in the United States and Australia. Simplus offers cloud consulting, implementation, data integration, change management, and training services for Salesforce.
Officials with Simplus, which also has U.S. offices in Boston, San Francisco, Chicago, Atlanta, and San Clemente, California, said the company has more than 4,500 projects and a customer satisfaction rating in the top 1% of all Salesforce partners.
Infosys, based in Bangalore, India, will couple the Simplus acquisition with that of Salesforce partner Fluido, which the company bought in 2018. The combination of the two will give Infosys broad expertise with Salesforce’s enterprise cloud solutions. The deal is expected to close in the fourth quarter of Infosys’ fiscal-year 2020.
For 10Pearls, Zen Cloud brings with it capabilities around Salesforce, Marketing Cloud, and Mulesoft in such areas as digital transformation, global team augmentation, and managed services. The combined company will count Coca-Cola, Docker, Intuit, and AARP among its enterprise customers. The deal also gives 10Pearls, founded in 2004 and based in Washington, D.C., a greater presence in the San Francisco area, where Zen Cloud is headquartered, and a workforce that now numbers more than 500.
Background: Partners of Salesforce, a key player in the enterprise cloud space, have become a popular target for channel players. Most recently, Accenture earlier this month bought Sierra-Cedar, an IT consultancy with expertise in Salesforce, Workday, and Mulesoft. There have been other such acquisitions this year, including Cognizant buying Salesforce partner El-Technologies last week.
The Buzz: “The acquisition reaffirms our continuous endeavor to strengthen our strategy of scaling our Agile Digital and cloud-first digital transformation capabilities,” Infosys COO Pravin Rao said. “This acquisition is key to staying relevant to the digital priorities of our clients and demonstrates our commitment to the Salesforce ecosystem. The strategic combination of scalable and agile global delivery capabilities of Simplus complements our effort to help global enterprises to transform their businesses. We are excited to welcome Simplus and its leadership team into the Infosys family.”
“Simplus will be a valuable addition to the Infosys family. Complementing our industry knowledge and existing Salesforce footprint with their strong presence in key markets, deep Salesforce consulting, and advisory expertise will help accelerate the transformation journey of incumbent companies,” Infosys President Ravi Kumar said. “With this strong addition to our portfolio, we look forward to unlocking additional value for our clients.”
“We are thrilled to be partnering with the Infosys team. We have viewed this partnership from a culture-first lens from the beginning, and we believe that the alignment of our company values and the preservation of our company DNA will allow us to accelerate growth and together become the strongest and most respected partner in the Salesforce ecosystem,” said Ryan Westwood, co-founder and CEO of Simplus.
“Salesforce is a key platform for enterprises looking to transform and digitalize. The acquisition of Zen Cloud is strategic in many ways for 10Pearls,” said 10Pearls CEO Imran Aftab. “It bolsters our expertise within Salesforce and Mulesoft, adds to our leadership team, and helps solidify our San Francisco area presence.”
“As part of 10Pearls, Zen Cloud will not only continue to provide the best possible experience for our clients, we will also be able to partner with customers more strategically with their end-to-end technology needs,” said Chris Fellows, Zen Cloud co-founder.