Tag: it
Indian IT Majors Go On A Buying Spree
Posted by BizGuy on Aug.27, 2008, under Uncategorized (1) Comment
Despite the slowdown in the overall world economic scenario, Indian IT companies are undeterred by the bleak business prospect. In fact they are using this as an opportunity to expand their overseas businesses. This became clear when Infosys, India’s second largest provider of IT enabled business services with an annual operating profit of around $1.25 billion announced its bid to acquire Axon Group of UK in an all-cash deal of $814 million.
According to analysts, Infosys is paying a premium of 33.1 percent to the average value during 6 last 6 months of Axon’s 67.85 million shares. The bid price is also 19.4 percent higher to the price the share was last traded on 22nd August.
There is no surprise in the bid as according to G. Gopalkrishnan, CEO of Infosys, the company is looking to leverage the Systems Application and Products (SAP) expertise that Axon offers.
“This strategic combinations of our groups will accelerate the realization of our common aspirations – that of becoming the most respected provider of business transformational services in the global market place.”
