Infosys, Liberty Global sign $1.64 billion deal to scale digital platforms

BENGALURU (Reuters) – Indian software services exporter Infosys and Liberty Global have signed a 1.5 billion euro ($1.64 billion) agreement to evolve and scale the communications firm’s digital entertainment and connectivity platforms, the companies said.

The 5-year agreement, which has an option to be extended to 8 years and beyond, will have Infosys taking over the operations of the UK-headquartered company’s entertainment and connectivity platforms, with its AI offering Infosys Topaz, the companies said in a joint statement on Tuesday.

“This will potentially enable millions of new customers, around the world, to experience next-generation digital entertainment and connectivity services through Horizon for the first time.”

Infosys will provide services worth 2.3 billion euros if the contract is extended to 8 years, and the collaboration will allow Liberty Global to realize run-rate savings in excess of 100 million euros per annum, according to the details outlined in the statement.

The order comes at a time when curtailed client spending amid macroeconomic uncertainties and recession fears have prompted Indian IT service firms to project muted growth, including Infosys, which in July, halved its full-year revenue forecast.

Last month, Infosys signed a five year AI deal with $2 billion target spend with a client whose name it did not disclose.

The Bengaluru-based IT services major has been in partnership with Liberty Global’s technology services platform since February 2020.

($1 = 0.9153 euros)

(Reporting by Hritam Mukherjee in Bengaluru; Editing by Rashmi Aich)