Infosys to buy UK’s Axon Group for $753 mn | india | Hindustan Times
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Infosys to buy UK’s Axon Group for $753 mn

india Updated: Aug 25, 2008 22:39 IST

Infosys Technologies, the country’s second-biggest software services exporter, on Monday said it was buying UK-based consultancy services firm Axon Group in a cash deal valued at £407 million ($753 million).

Nasdaq-listed Infosys said it expected the deal to be completed by November 2008.

Outsourcing firms such as Infosys and its bigger rival Tata Consultancy Services are expanding in Europe, Asia, the Middle East and Latin America to cut their dependence on the US market, which accounts for more than half the sector’s revenue.

Infosys said buying Axon would “accelerate the achievement of some of Infosys’ current strategic corporate objectives, including the continued expansion of consulting capabilities”.

Last month, Infosys, which develops applications, designs supply chains and offers back-office services, reported a 21 per cent rise in quarterly profit but warned of challenging times ahead as its major Western clients battle weakening economies.

Ahead of the announcement, shares in Infosys, which the market values at $22 billion, ended 0.5 per cent higher at Rs 1,703.05 on the Sensex.