Software giant Infosys Ltd has hived off its products and platform business into a separate entity called Edgeverve Systems Ltd, it said in a filing with the US Security and Exchange Commission (SEC). The Bangalore-headquartered company has also announced $1 million investment into the new subsidiary, which will focus on developing products and platforms.
"On February 14, 2014, we incorporated a wholly-owned subsidiary Edgeverve Systems Ltd and invested less than $1 million in it. Edgeverve is expected to focus on developing and selling products and platforms," Infosys said in the filing.
Infosys has been focusing on IP-related products, platforms and solutions (PPS) business as part of its proposed 'Infosys 3.0' strategy.
Infosys already had a few successful spin-outs such as the VAS firm OnMobile, which recently went through a bad patch with alleged corporate governance irregularities involving its promoter. In the past, it had also seen another spin-out in Boston-based Yantra Corp, a management solutions company which was acquired by SBC Communications for $170 million.
In April last year, Infosys had said that it was planning an innovation fund worth $100 million to focus on ideas, products and platforms.
(Edited by Joby Puthuparampil Johnson)