Infosys CEO Sikka Slams ‘False’ Stories About Panaya Deal

In a letter to employees, Infosys chief executive Vishal Sikka lashed out at detractors for spreading "false and malicious" stories about the company and said they were "designed" to target him to the "point of harassment".

Sikka said on Monday that stories are being spread about the US$ 200 million Panaya buyout to target him even as the tech major asserted that no one from the management team benefitted from the deal.

In a strongly worded email to Infosys employees, Sikka said the reports questioning the company's acquisition of Panaya are "orchestrated by people who are hell-bent on harming the reputation of the company and its employees".

Also Read: Infosys CEO Vishal Sikka, Board to Clarify on Rift With Founders

In a statement on Monday evening, Infosys said:

The IT giant added that it will investigate the charges made and "will respond to all queries received either directly or from the regulatory authorities" as per its process.

In February 2015, Infosys had announced buying New Jersey-based automation technology company Panaya, its second largest acquisition deal, for US $ 200 million or Rs 1,250 crore in cash.

Also Read: Infosys Chairman R Seshasayee Defends CEO Vishal Sikka’s Salary

A section of media reported about a whistleblower's letter to market regulator SEBI, alleging irregularities in the acquisition of Panaya. Referring to the charges, Sikka said:

He added that while these "distractions are expensive, draining and time-consuming", it is Infosys' burden to ensure that the company's business continues "unflinchingly".

Sikka, who is pitted against a clutch of co-founders led by NR Narayana Murthy voicing concerns over a spike in his remuneration and hefty severance packages for two former executives, said fresh allegations on Panaya acquisition were distractions that are "expensive, draining and time-consuming."

Stating that the company has "far bigger battles ahead", Sikka urged employees to "rise above the distractions, focus on what really matters, and deliver".

Infosys said it has a strong, established internal process to evaluate acquisition targets and make investments.

Over the last few weeks, Infosys has come under fire from some of the co-founders who have alleged corporate governance lapses.

Infosys board and management have, however, stood their ground denying these charges. On an investor call, Sikka had recently stated that the company's large clients have come out in its support.


The Quint
The Quint is media with intelligence. The Quint is media for mobile consumption – quickly, visually and socially. The Quint is popular, digital journalism.

Share the Article :