The Indian tech giant Infosys announced on December 23rd that a $1.5 billion deal with an undisclosed global company has been terminated. The memorandum of understanding (MoU) that was previously signed has now been cancelled with Infosys.

Information About The deal

The deal was going to be a 15-year-long deal focusing on providing digital transformation and modernisation of business operations services through Infosys’ platforms and AI solutions. The deal was linked in September 2023. Interestingly, Nilanjan Roy, the ex-CFO of Infosys, suddenly resigned two weeks before the deal cancellation announcement after working in the position for six years. With global uncertainty, the deal loss is certainly going to increase pressure on Infosys and other tech companies.

“The global company has now elected to terminate the Memorandum of Understanding, and the parties will not be pursuing the Master Agreement,” the tech giant disclosed in a Bombay stock exchange filing on Saturday.

Impact on Infosys’s Stock Price

After going to about ₹1,200 per share in April 2023, the Infosys share price kept on increasing. On Friday, Infosys shares closed 1.6% higher at ₹1,562 per share. This news of losing a big $1.5 billion deal is certainly going to create tension among the stockholders, and we might see a decrease in the share price on Monday.