Leading Indian outsourcing company Infosys plans to buy British consultancy Axon Group for 753.1 million dollars as it moves to expand its business advisory footprint, a statement said Monday. The all-cash take-over deal is expected to be completed by November 2008, Nasdaq-listed Infosys, India's second-ranked software services exporter by revenue, said in the statement.
Chief executive Kris Gopalakrishnan said he was "excited" about the deal, which would boost the company's ability to provide "business transformational services" to firms globally. The acquisition comes as India's flagship outsourcing industry, which has seen profits come under pressure in the international economic downturn, seeks to diversify its activities and look for new business models. The sector is also looking to reduce its dependence on its main market the United States.
Axon Group Plc, founded in 1994, provides consultancy services to multinational organisations and has about 2,000 employees in Britain, North America, Malaysia and Australia.
The purchase by Infosys, based in the southern Indian high-tech city of Bangalore, is another sign of corporate India spreading its global wings in making foreign acquisitions. But the pace of international take-overs has slowed from last year.
Earlier this year, India's Tata Motors bought British luxury motoring icons Jaguar and Land Rover from ailing US carmaker Ford for 2.3 billion dollars as it vaulted into the premium global car market.
"Infosys believes that the acquisition will accelerate the achievement of some of Infosys' current strategic corporate objectives including the continued expansion of Infosys' consulting capabilities," said the company. For the year ended December 31, 2007, Axon reported profit after taxation of 20.2 million pounds (37.4 million dollars).