Axon bought by Infosys Technologies for £407m

Source: Exec Digital UK

Date :28/08/2008 10:32:21

Indian-based Infosys Technologies has acquired UK consultancy company Axon Group Plc for £407.1 million cash.

The deal, which values Axon at £6 per share, was unanimously recommended by the Axon board. This valuation was 19.4 percent higher than the £5.025 per share at the close of business on Friday, August 22..

Infosys Technologies, India’s biggest software firm and second-biggest software exporter, is believed to be focussed on entering the European market, and Axon’s customer base would help it achieve this.

Global reach

Currently, 61 percent of Axon’s revenue comes from Europe, Africa and the Middle East, while 34 percent comes from North America.

Axon’s shares are 68 percent owned by institutions such as Blackrock, Standard Life, AEGEON, JPMorgan, Barclays Global and Scottish Widows.

Infosys’ shares rose 0.5 percent higher ahead of the announcement, though they fell 0.5 percent after the announcement, reflecting some shareholders’ unease given Europe’s slowing economy. Analysts believe that the benefits of expanding geographical markets remains the driving force behind the deal.