Saturday, September 6, 2008

Infosys-Axon Deal !

Hailed as the largest outbound deal by Indian IT Company Infosys-Axon, some market analysts believe it will have no major financial impact on the company. Agreed it’s a strategic buy in the SAP space, but any sharp appreciation in the rupee against various currencies and a prolonged recession in major user economies may be a difficult path  choosen by Infosys. 

Infosys announced acquiring UK-based Axon Group in a 407-million pound (Rs 3,310 crore) all-cash deal after market hours Monday. The deal is expected to be consummated by November 2008, with the payment being made in December, and would add to its earnings from January 2009,

There is  a mixed reaction for the deal in the market and most of them are worried as investing in a company that draws majority if its earnings from the US where slow down is the buzz word. Analysts feel that is not a very good buy.

Photo courtesy : Nasdaq

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