Infosys has bagged a €1.5-billion ($1.6 billion) deal from Liberty Global to build and scale the entertainment and connectivity platforms of the digital communications firm, the Indian IT services player said on August 15 while announcing its third mega agreement this year.

This deal comes at a time when the company has slashed its revenue guidance for the current financial year amid a tough macroeconomic environment.

“We are excited to bring Infosys Topaz to enable transformative AI-first capabilities to complement the cloud-first digital foundation we have laid for Liberty Global using Infosys Cobalt…,” Infosys Chief Executive Officer Salil Parekh said in a statement.

Topaz is an AI-first set of services, solutions and platforms that used generative AI technologies.

The agreement has an initial tenure of five years that can be extended to eight years, which would take the deal value to €2.3 billion ($2.5 billion), the company said in an exchange filing.

Also read: Infosys wins $454-million deal from Danske Bank

As part of its deal, Infosys said it will allow Liberty Global, which is a converged video, broadband and communications company, to realise run-rate savings in excess of €100 million per annum inclusive of other savings and technology investments.

Liberty Global has been Infosys’ client since February 2020. Infosys said it will take over the build and operations of Liberty Global’s Horizon entertainment and connectivity platforms.

Also read: Infosys bags five-year deal pegged at $2bn with existing client

“By bringing the scale and breadth of Infosys, including cutting-edge technologies such as Infosys TopazTM AI offering, the expanded collaboration ensures continued operational excellence, a highly scalable development engine for new features and capabilities, and efficiencies for Liberty Global,” the statement read.

Liberty Global will also license these platforms to Infosys, so the digital services provider can offer services to new operators and new markets.

It will continue to control product roadmaps and retain all intellectual property for the Horizon entertainment and connectivity platforms.

As part of the deals, 400 employees of Liberty Global will also join Infosys. Senior executives and technology teams from Liberty Global’s Product, Technology Development Service Delivery Group, Network & Shared Operations and Security Groups will transition to Infosys.

“They will benefit from global business exposure, scale, and wider career advancement opportunities. They will also play an important role in shaping the future of Infosys’ communications, media and entertainment business and add significantly to its engineering capabilities,” the statement said.

“As we prepare to welcome new talent and teams of innovators to Infosys, we look forward to building on the trust that Liberty Global has in us,” Parekh said.

Infosys has also won a $1.5-billion deal from bp and a $454-million from Dankse Bank this year.

Last week, rival HCLTech bagged a $2.1- billion contract from Verizon.