On 22 March 2022, Infosys announced that it had entered into an agreement to acquire Oddity, a global leader in next-generation digital services and consulting, for $55m representing an EV / Sales multiple of 2.2x based on CY 21A financials.
The move strengthens Infosys’ creative, branding and experience design capabilities, and demonstrates its continued commitment to co-create with clients and help them navigate their digital transformation journey.
Infosys is a global leader in next-generation digital services and consulting.
With over 292,000 employees, the company enables clients in more than 50 countries to navigate their digital transformation. The enables enterprises with an AI-powered core coupled with agile digital at scale to deliver unprecedented levels of performance and customer delight.
Founded in 2000, Oddity is a digital marketing, experience, and commerce agency. The firm has a comprehensive service portfolio and enables digital transformation for leading German omni-channel, e-commerce retailers, leading FMCG brands and global mobility providers. Offerings include digital-first brand management and communication, in-house production, virtual and augmented reality, experience design and e-commerce services.
The company’s clientele include Porsche, Bosch, Disney, Mercedes Benz, Mini, WWF, Trumpf, Cosnova Beauty, Festo, Weleda, Schneider, Felix, Ritter Sport, Otto, Rolf Benz, Krombacher and Bonprix.
With more than 300 digital experts in Stuttgart, Berlin, Cologne, Belgrade, Shanghai and Taipei, the firm is one of the largest independent digital agencies from Germany.
Rationale of the transaction:
Together with Infosys’ earlier acquisition of Wongdoody, which offers creative and marketing services, Oddity will help global CMOs, and businesses thrive in a digital commerce world with complementary skills and expertise.
As part of Infosys’ digital experience and design offering, Oddity will become part of Wongdoody and join its network of studios across Seattle, Los Angeles, Providence, Houston, London, and design hubs in five cities in India.
Oddity’s digital commerce and marketing knowledge including its metaverse-ready set up is the perfect complement to Infosys’ prowess in technological transformation.
In terms of financials, Oddity clocked $25m in revenue in CY 21A, a 26% increase compared to its revenue in CY 20A. The enterprise value of $55m includes earnout, management incentives and bonuses.
The Chesapeake Group was not an advisor in this transaction.