One of this country's leading IT companies is to be acquired by Indian software giant Infosys.

The AU$31 million purchase of Expert Information Services will see the company renamed Infosys Technologies (Australia).

Expert describes itself as Australia's leading IT service provider specialising in the design, integration, build and configuration of business solutions utilising Microsoft .NET and J2EE technologies. It was the first Australian company to become a Microsoft Gold Certified Partner for Security Solutions. It was awarded a multi-million dollar J2EE development contract by the Victorian government earlier this year, and in 2002 it won an AU$1 million development contract from Sharp Corporation.

K. Dinesh, a director of Infosys and chairman-designate of Infosys Technologies (Australia) said -Australia is a very important market for us and this transaction reaffirms our commitment to this market by significantly enhancing our local presence."

The deal, which should be completed next month, involves an unspecified cash payment on completion plus further payments contingent on the achievement of financial targets until March 31, 2007. This purchase price is approximately four and a half times Expert's 2003 after-tax profit of AU$7 million.

The combination of Infosys's existing local operation and Expert will have a workforce of around 500, but -the aspiration is to make it 5000 people," said Infosys director Srinath Batni. More jobs will be created in Australia, he said, and local employees will have the opportunity to gain overseas experience.

Gary Ebeyan, founder and CEO of Expert said -The merger with Infosys is a perfect fit with Expert's business strategy and we are very excited about it." Ebeyan is CEO-designate of the new company, and the Expert management team is being retained.

"The new entity will allow us to continue to deliver high-quality, leading edge solutions to our existing and new customers with an extraordinary value proposition based on the global delivery model of Infosys," he added. While some work will be carried out offshore, Ebeyan stressed that customers could choose to have their projects carried out entirely in Australia. -It elevates the high value work we do here... it certainly doesn't eliminate the other work we do," adding that the company will continue to use local talent to do local work.

A merger with another Australian company would not have provided Expert with the strategic fit or ongoing opportunities offered by Infosys, said Ebeyan.

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