Monday, August 25, 2008

Infosys Acquires Axon Group for £ 407.1 m

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Infosys has acquired Axon Group, a UK-based company, for £407.1 million . Infosys says the Axon Group deal would be completed by November. The Infosys management said the deal is at 33% premium to the six-month average price of Axon.

In a Press Conference, it said that this deal would accelerate the realization of the company's aspirations. The CAGR (Compound Annual Growth Rate) of the company is at 42.7% and Axon's operating margins is at 15% and the net margin is at 10%. It said that the Infosys would offer six pounds for per share of Axon. It said that the purpose of this acquisition is to create a leading SAP service provider. It added that Axon is a zero balance company. The management said that it would give its guidance for Axon once the deal materializes.

Axon’s auto clients include Maruti, Honda, Ford, Nissan and Mercedes and its pharma clients include AstraZeneca, Novartis Pharmaceuticals and GSK (GlaxoSmithKline). Axon's financial services clients include GE Capital, Barclays and BankMuscat and its telecom clients include British Telecom, Vodafone and Motorola

Axon Group offers consultancy services and has 2,000 employees and it reported revenues of £204.5 million in 2007 and a PAT of £20.2 million.

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