Infosys Stock Rallies 2% After Winning $1.6 Billion Deal From Leading Telecom Firm Liberty Global

Tech giant, Infosys on Tuesday announced that it has expanded its collaboration with one of the world's leading converged video, broadband and communications companies, Liberty Global. The Indian tech player wins up to €1.5 billion deal (approximately $1.64 billion) to evolve and scale Liberty Global's cutting-edge digital entertainment and connectivity platforms.

At the time of writing, Infosys shares traded at Rs 1,413 apiece, up by 1.34% on BSE. Its market cap was around Rs 5,85,572.27 crore at the current price level.

Infosys shares zoomed by 2% with an intraday high of Rs 1,419 apiece.

As per the regulatory filing, 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 over the initial 5-year term and at €2.3 billion if the contract is extended to 8 years.

Infosys will take over the build and operations of Liberty Global's award-winning Horizon entertainment and connectivity platforms. Also, 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.

However, notably, Liberty Global will continue to control product roadmaps and retain all intellectual property for the Horizon entertainment and connectivity platforms.

This tie-up is expected to allow Liberty Global to realize run-rate savings in excess of €100 million per annum, inclusive of other savings and technology investments.

Mike Fries, CEO, of Liberty Global, said, "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."

He added, "We look forward to working together to accelerate innovation and make our entertainment solutions even more powerful and engaging as new generations of digital-first customers continue to demand more from us all."

Further, Salil Parekh, CEO & MD, of Infosys, said, "We are excited to bring Infosys Topaz^TM 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."

Parekh added, "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."

Also, Infosys highlighted that the expanded collaboration will additionally create exciting career opportunities for more than 400 Liberty Global employees joining Infosys, who will benefit from its global scale and reach.

As part of the agreement, 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.

Infosys mentioned that these senior executives 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.