The deal is valued at
The market for SAP services is growing very fast, Infosys CEO Kris Gopalakrishnan told reporters in Bangalore.
The acquisition of Axon, which is expected to be completed by November, will create a large SAP services organization, with the ability to deliver services from multiple locations, and with a global reach, Gopalakrishnan said.
"This will be a large acquisition for Infosys, and in the right market," said industry analyst Siddharth Pai, a partner at outsourcing consultancy firm Technology Partners International (TPI). Infosys has expertise in SAP technology and software development, while Axon has complementary expertise in the deployment of these technologies to meet business needs in a variety of industry verticals, he added.
Infosys will also have access to some large clients of Axon like Xerox to which it plans to cross-sell its other services, said V. Balakrishnan, chief financial officer of Infosys.
Infosys already has an SAP services practice with more than 2,100 staff and 100 clients, and this business had a compound annual growth rate of 65.5 percent over the last three years, Balakrishnan said.
Axon had revenue of
Indian outsourcing companies will have to become global by offering delivery capabilities in the markets in which they operate, TPI's Pai said. The proposed acquisition of Axon is a step in this direction by Infosys, he added.