| | Infosys Technologies,
India’s second-largest
IT services provider,
has offered to buy
UK-based SAP consultancy
Axon Group plc for
£407.1m ($755m) in cash.
Infosys’ second
acquisition in 13 months
should help the company
boost revenue from the
fast-growing European
market at a time when
India’s IT services
providers are looking | |
|
| | for growth beyond a
slowing US market.
With Axon’s 2,000
employees, who service
customers including BP
and Xerox, Infosys will
almost double the staff
on its SAP services
unit. Axon has more than
200 customers in 30
countries.
According to
analysts, the
acquisition would give
Infosys access to new | |
|
| | clients and help boost
its consulting and
package implementation
capabilities and its
presence in the
high-margin technology
consulting business.
The proposed takeover
is the largest to date
by an Indian technology
company. Wipro, India’s
third-largest IT
services provider,
acquired US-based
Infocrossing for $548m | |
|
| | last year.
The all-cash deal,
which has been
recommended by Axon’s
board, values Axon about
two times its revenue in
2007, which was £204.5m
($378.3m), and 20 times
its net profit of £20.2m
($37.4m). The
transaction is subject
to shareholder approvals
and is expected to close
in November of this
year.
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In July 2007 Infosys
bought three back-office
service centres from
Royal Philips
Electronics NV for $28m
in cash, its first
purchase in more than
three years. The deal
gave it a $250m services
contract, 1,400 Philips
employees and the
opportunity of winning
more European orders. | |
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