In continuation of its pursuit to buy firms in niche areas, Infosys Technologies, the country’s second largest IT services firm, is actively looking at acquiring companies in the consulting and healthcare spaces in the range of $400-500 million.

“We are looking at spending up to 10 per cent of our revenues, which could be in the range of $400-500 million, to acquire companies in niche areas like consulting and healthcare,” Infosys CFO V Balakrishnan told Business Standard. He said the company was primarily looking at companies with a strong presence in Europe. “We are also open to the US if we get the right candidates,” he added.

He expects the acquisition to either give it a geographical presence or a strong consulting base which can enhance its revenues from the enterprise solutions business going forward.

Balakrishnan simultaneously rubbished some reports that Infosys is planning to buy European consulting firm Ciber Novasoft. Balakrishnan said: “I completely deny this. We aren’t looking at this company.”

Infosys, for long, had been trying to strengthen its consulting practice as clients are now asking for more advisory-related work. Consulting and enterprise solution business together constitutes about 25 per cent Infosys’ business today.

In August last year, Infosys had offered to acquire European SAP consulting firm Axon Group, which could not materialise due to a counter offer by HCL Technologies. HCL finally acquired the company. Infosys, according to industry sources, is on the lookout for consulting firms in European countries. However, the process is getting delayed because of the fact that there are very few pure-play European consulting companies at the moment.

It is learnt that Infosys is scouting for acquisitions in continental Europe, as this would give it a platform to get into certain European countries which have been traditionally conservative in terms of outsourcing.

Infosys, which had a cash reserve of $2.8 billion (Rs 13,796 crore) at the end of September 30, 2009, has been traditionally conservative in its inorganic pursuit, as compared to its industry peers. The company has so far made three acquisitions including the recent acquisition of US-based insurance BPO services provider McCamish Systems for about $58 million.