Indian giant Infosys will acquire Melbourne's Expert Information Services for $31 million, Expert announced on Thursday.
The developer and integrator will be renamed Infosys Technologies (Australia) Pty Ltd, the company said.
The transaction will be completed in January 2004.
As ARN revealed early on Thursday, the deal will see a major Telstra application developer owned by a company that bases much of its staff outside Australia.
Telstra has been roundly criticised in the past for its deals with Indian companies like Infosys and Satyam, which has moved local IT services jobs offshore as a result.
K. Dinesh, member of the board, Infosys Technologies Limited and chairman-designate of the new company in a statement said: "Australia is a very important market for us and this transaction reaffirms our commitment to this market by significantly enhancing our local presence. Our Global Delivery Model combined with the service capabilities of Expert will enable us to be a premier player in the growing Australian market."
"The merger with Infosys is a perfect fit with Expert's business strategy and we are very excited about it," said Expert CEO, Gary Ebeyan.
Ebeyan founded Expert in 1994, and for the last five years the company has held the Telstra's Sales Transaction Solution contract, worth around $50 million.
Expert employs around 350 staff and is both a .NET and Java developer.
Financial commentators have previously estimated Ebeyan to be worth about $37 million.
Expert had total revenues of $46.7 million for the fiscal year ended June 30, 2003 and a net profit after tax of $7.0 million.
(This story will be updated as further news comes to hand.)