Latest Business Buzzz!!!
Infosys buys UK’s Axon for Rs 3,300 crore
- Infosys acquired UK based Axon Group, a SAP consulting services company listed on London Stock Exchange, for about $753 million (407.1 million pounds) in an all-cash deal
- Infosys has offered 6 pounds per share, which is a 33.1% premium on Axon’s six month average stock price and almost 19.4% over the closing price on Friday
- Axon, with around 2,000 employees, provides consultancy services to MNCs with SAP as their strategic enterprise platform. Axon’s revenues of £204.5 million in fiscal 2007 with a net profit of £20 million
- Rationale for the deal: The SAP practice is a growing business segment for Infosys, accounting for 24% of its revenue with a CAGR of 65% over the last three years. This deal gives them a foothold in the lucrative US and European markets
- Infosys deal is said to be the biggest overseas buyout by the Indian IT sector. The biggest acquisition till now was the Wipro’s acquisition of Infocrossing for $600 million last year
Tata set 2-week deadline for Singur:
- Tata Motors may pull the plug on Singur if the situation does not improve within the next fortnight
- The Singur plant is a readymade construction, which can be moved. The expected loss is estimated to be Rs 100-200 crore on account of expenses incurred in laying the foundation, besides the inevitable delay in full-scale production of the Nano.
- Nano’s launch may not get affected by the agitation in Singur, because the first batch of around 4,000-5,000 cars is reportedly ready at Tata Motors’ Pantnagar and Pune plant
- Nano project is getting offers from a number of state governments, including Maharashtra, Orissa, Andhra Pradesh and Uttaranchal