Infosys loses ₹12,500 crore mega-deal with AI company after CFO Nilanjan Roy's resignation
Infosys and an undisclosed global firm terminated their potential deal linked to artificial intelligence.
Just days after a major personnel change in the top leadership, Narayana Murthy's firm Infosys announced that the deal between them and an unnamed global company has been terminated. The potential deal was worth $1.5 billion, reported the company filings.
Infosys announced on Saturday that their Memorandum of Understanding (MoU) with an undisclosed global company has been terminated. The deal was focused on developing artificial intelligence solutions to meet the current industry needs.
The deal between Infosys and the company was intended to be a commitment of 15 years, and the MoU was inked in September 2023. This comes just two weeks after the sudden exit of CFO Nilanjan Roy.
“This is in continuation to the disclosure made by Infosys vide letter dated September 14, 2023, titled “Company update” with respect to a Memorandum of Understanding with a global company which was subject to parties entering into a Master Agreement,” Infosys said in their exchange filings.
The company further added, "The global company has now elected to terminate the Memorandum of Understanding and the parties will not be pursuing the Master Agreement."
The MoU signed on September 14 of this year stated that Infosys and the global company will work together "to provide enhanced digital experiences, along with modernisation and business operations services, leveraging Infosys platforms & AI solutions”.
Nilanjan Roy's resignation as Infosys CFO
The resignation of Infosys Chief Financial Officer (CFO) Nilanjan Roy made a major impact on the share prices of the company. Roy resigned from the company on December 12, saying that he was stepping down from the post to pursue "personal aspirations."
His last working day as the CFO will be on March 31, 2024, said Infosys in an official statement. After that, Roy will be replaced by Jayesh Sanghrajka, the current executive vice president and deputy CFO of Infosys.
CEO Salil Parekh said, "As deputy CFO, he (Sanghrajka) has been leading multiple portfolios in the finance function for several years now and his depth of experience and knowledge will serve us well to take the function to greater heights."
