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?
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