Indian offshore outsourcing giant Infosys is set to gain a firm toe-hold in the UK after agreeing to buy London-listed consultancy Axon Group for £407.1m.
The deal - one of the biggest overseas acquisitions yet by an Indian IT services outfit - comes as an increasing number of UK firms look to Indian firms to fulfil their outsourcing needs.
SAP consultancy Axon banked a net profit of £20.2m on sales of £204.5m last year and will hand Infosys access to a string of new European clients.
Analysts say the deal - which is expected to close in November - will help reduce Infosys’ reliance on the US market, where the slowdown is jeopardising outsourcing growth.
Commenting on the transaction, Kris Gopalakrishnan, chief executive of Infosys said, "We are excited about this acquisition. The strategic combination of our groups will accelerate the realization of our common aspiration - that of becoming the most respected provider of business transformational services in the global marketplace.”
According to a recent report by independent sourcing advisory firm EquaTerra, every single one of the UK’s top IT spending organisations that offshore IT now use India as one of their destinations.
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