Infosys to Acquire SAP Consultant Axon

by CXOtoday Staff    Aug 26, 2008

Infosys Technologies, India’s second largest exporter of software services, in a conference call with financial analysts confirmed it is buying UK consultancy services firm Axon in a cash deal valued at 407 million pounds.

The acquisition will strengthen Infosys’ forte in SAP by increasing its ability to scale and reach in large transactional deals. Infosys CEO S Gopalakrishnan told analysts last evening, “We will be able to handle more number of deals in the 30, 60, 100 million bracket. Besides, we will be able to tap new geographies and strengthen our presence in UK.”

Axon has a strong presence in Europe, while Infosys is a strong player in the US, which makes this marriage a perfect match. The deal brings Infosys large clients such as Motorola, Vodafone, Barclays, GE Capital amongst others. Moreover, Infosys also gets a delivery centre in Malaysia in addition to its capacities and presence in India.

Gopalakrishnan said, “Infosys will take on all 2000 axon employees that comprise a strong management and top consultants.” The Axon employees provide consultancy services to MNCs with SAP as their strategic enterprise platform. The company has between 50-20% share of the SAP services market in the UK. “The SAP practice is a growing business segment for Infosys and this is the space where we see momentum,” added the Infosys CEO.

Axon will give Infosys access to its client base, giving the latter an opportunity to cross-sell and vice versa. It may be recalled that Wipro acquired Infocrossing for 600 million dollars and Infosys’ acquisition of Axon surpasses that.

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