Infosys is all set to buy UK based Axon group for 407 mn euros(753.10 Million). The deal is to be completed by November 2008. The UK based Axon Group is into consultancy services.
Infosys said the acquisition would “accelerate the achievement of some of Infosys’ current strategic corporate objectives, including the continued expansion consulting capabilities”.
Axon Group has 2000 employees. The Q1 revenue for Axon was 204.5 mn pounds in 2007. The profit after tax for the same period was 20.2 mn pounds. According to sources in Infosys, transfer of ownership will be completed by November.
Ahead of the announcement, shares in Infosys, which the market values at $22 billion, ended 0.5 percent higher at 1,703.05 rupees in a Mumbai market that closed up 0.3 percent.
Axon Group is a well known company engaged in the delivery of Business Transformation programmes for large organisations that use SAP as their strategic platform.
It is estimated that Axon Group has revenues of $378.3 million. According to Infosys the Axon group transfer will take place by November.
Commenting on the transaction, the CEO of Infosys, Kris Gopalakrishnan said, “We are excited about this acquisition. The strategic combination of our groups will accelerate the realization of our common aspirations – that of becoming the most respected provider of business transformational services in the global market place. We hold the management and employees of Axon in high regard and look forward to welcoming them to the Infosys Group.”
Axon provides consultancy services to multinational organizations that have chosen SAP as their strategic enterprise platform and has about 2000 employees.
Specializing in the delivery of change through technology-enabled transformation programs, Axon’s consultants bring in-depth industry expertise alongside best practice functional knowledge to address the strategic, operational, information management and organization effectiveness challenges organizations face today.
Founded in 1994, Axon today has offices in the UK, North America, Malaysia and Australia. For the year ended December 31, 2007, Axon reported profit after taxation of £20.2 million (Rs 1.6 billion) on revenues of £204.5 million (Rs 16.6 billion).
A Press conference will by held by Infosys Technologies today at 6:00 PM. More information will be made public in the conference.
Tarun Reflex 