Subba’s Serendipitous moments

August 29, 2008

Infosys acquires Axon

Filed under: Business,Strategy — Subbaraman Iyer @ 12:14 am
Tags: , , , ,

Infosys made another acquisition and this time the size of the acquisition was reasonably big. Infosys acquired Axon which is a listed company in the UK.

Infosys paid US$753.1 million in an all cash deal. The surprising thing about this acquisition is that Axon is just another SAP consulting firm though their revenues have grown quite nicely in the last few years based on the financials here.

I wonder what’s the strategic intent of this acquisition made at a P/E of 20 in a kind of slowing economy. Is it because Infosys needs a stronger presence in UK, where Axon has close to 1400 employees? Is Infosys strategy to move work to India and improve margins?

Shouldn’t Infosys make a more bigger acquisition in an emerging area?

Tags: , ,

Powered by Qumana

Advertisements

2 Comments »

  1. […] 6:29 pm I didn’t expect a bidding war over Axon.  I thought that it was a done deal. In my opinion, Infosys is already paying a big premium for Axon. Now, the Times of India reports that HCL […]

    Pingback by HCL counters Infosys bid « Subba’s Serendipitous moments — September 9, 2008 @ 6:46 pm | Reply

  2. […] didn’t expect a bidding war over Axon.  I thought that it was a done deal. In my opinion, Infosys is already paying a big premium for Axon. Now, the Times of India reports that HCL […]

    Pingback by HCL counters Infosys bid | Expanding Thought — March 14, 2011 @ 1:48 pm | Reply


RSS feed for comments on this post. TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: