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Infosys Adds One More Muscle

Saheer Karimbayil
Monday, September 1, 2008
Saheer Karimbayil
India’s IT major Infosys Technologies, which is known for not compromising on margins in terms of growth, has made its second acquisition of an entire company, adding into its fold the British-based leading SAP consulting firm Axon Group. The all cash deal is valued at $753 million (Rs. 33 billion).

The buyout comes four years after Infosys acquired the Australian IT services provider Expert Information Services in 2003 and a year after acquiring the three business process outsourcing divisions of the Netherlands-based Philips NV's in 2007. The acquisition process, which involves purchase of Axon's entire equity at £6 per share through a scheme of arrangement, is expected to be completed by November.

“The deal clearly marks aspirations of top Indian firms to play a big role on the global IT services scene. They are re-building themselves as their age-old selling proposition based on low-cost, quality, and process superiority gets commoditized. This deal is the first yet substantial step towards building superior business transformation capability to match traditional back office services such as application development and maintenance,” says Sudin Apte, Sr. Analyst, Forrester Research.

The 14-year-old Axon, with 2,000 employees, is a global player in business transformation services using SAP software as a strategic platform for enterprises.

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