Infosys to buy Axon for $753 million

Just read about this ..

Infosys Technologies, my former employer, is going to make a big acquisition.

Here is the official press release from them:

Infosys announces its plans to acquire Axon Group plc.

Excerpt from the above release:

"Infosys Technologies Limited (NASDAQ: INFY) is pleased to announce that it has agreed terms for a recommended cash offer for a leading UK-based SAP consulting company, Axon Group plc (LSE: AXO), in a deal valued at £407.1 million (INR33.1 billion; US$753.1 million".

After reading various articles about the news, it seems that this is a good deal for Infosys as well as for Axon. It should enable more marketing and financial resources to promote Axon's services, and hence larger revenues for the combined entity, as well as bolster Infosys's strength in the SAP consulting space. Unlike some of the other large Indian IT services providers, Infosys has not made all that many acquisitions to date, but it looks like they've made a good move with this one.

More comments about the deal, from various sources:

The Hindu Online.

From Bloomberg.

Excerpt from above link:

"The proposed takeover is the largest ever by an Indian technology company, according to data compiled by Bloomberg.".

From CIOL.com.

From the Wall Street Journal Online.

From LiveMint.com.

From Times Online of the UK.

Vasudev Ram - Dancing Bison Enterprises.