Infosys Ltd has signed a $1.5 billion five-year outsourcing deal to grow broadband, video, and mobile communications firm Liberty Global’s digital entertainment and connectivity platform.
Liberty Global will license the platform to Infosys under the deal that will offer digital entertainment and connectivity services to millions of customers across Europe, the companies said in a filing.
Liberty Global will continue to control product roadmaps and retain all intellectual property for the Horizon entertainment and connectivity platform, the statement added.
“We are excited to bring Infosys Topaz to enable transformative AI-first capabilities to complement the cloud-first digital foundation we have laid for Liberty Global using Infosys Cobalt. This will unveil a new chapter in our joint journey of innovation as we reimagine entertainment and the connectivity experience for millions of global consumers,” Infosys chief executive officer and managing director Salil Parekh said.
The contract may be extended to eight years, taking the deal value to $2.5 billion, the companies said in the filing.
Under the terms of the deal, about 400 Liberty Global employees, including senior executives and technology teams, will join Infosys.
“Strengthening and expanding our collaboration with Infosys gives our best-in-class solutions new scale with the ability to reach many more markets and bring positive experiences to more 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. We look forward to working together,” Mike Fries, chief executive of Liberty Global, said.
The statement said that the tie-up would help Liberty Global “realize run-rate savings in excess of €100 million ($110 million) per annum, inclusive of other savings and technology investments”.
“Our collaboration with Infosys started a few years ago, and since then we’ve made great progress in jointly establishing our best-in-class entertainment and connectivity platforms. This expansion of our relationship is the right next step to further strengthen the performance of our digital first entertainment and connectivity solutions, scale their reach and impact, even as we chart the next round of innovations,” Enrique Rodriguez, chief technology officer at Liberty Global, said.
The agreement is subject to regulatory approvals and consultations.
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