Infosys refutes whistleblower's charges on Panaya deal

Global software major Infosys on Monday refuted charges by an anonymous whistleblower, who alleged that its executives had personal interests in buying the US-based Panaya firm for $200 million in February 2015.

"We refute the allegations made in the anonymous whistleblower letter. The assertions are libellous and aimed at tarnishing the company`s image and its management," asserted the IT major in a statement here.

The whistleblower is reported to have mailed the letter to the Indian market regulator Securities Exchange of India (Sebi) in Mumbai.

The city-based outsourcing firm acquired the automation technology firm to offer large-scale enterprise software management as a service to its global clients.

Stating that no member of the management team had investments in the deal, the company said insinuations on anyone in the team benefitting from its acquisition were misleading and slanderous.

"Regardless of the malicious intent of the letter, we will pursue its normal course of action and investigate the charges made," pointed out the statement.

Clarifying to the charges on the buyout, the company said it had a strong internal process to evaluate acquisition targets and make investments.

When the management presented the rational for the deal, the Board deliberated and approved the investment, as it was within the valuation range.

Terming the charge that $20 million invested in Panaya before the deal was distributed to shareholders untrue, the company said when bought, it had $18.6 million (Rs.116 crore) cash balance as disclosed in fiscal 2014-15 annual report.

"Panaya was looked at as an acquisition candidate based on its strategic fit. There was no conflict of interest due to CEO Vishal Sikka`s association with its investor Hasso Plattner, when the former was with SAP enterprise software firm," added the statement.