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Chennai, Aug. 27 “We believe our price is fair for Axon Group,” according to Mr Kris Gopalakrishnan, CEO, Infosys.

“It is a full-cash deal, which is an attractive offer,” he told newsperons at the company’s Mahindra City SEZ.

Asked if Infosys is willing to raise its bid price should another company bids to acquire Axon,he said, “This is a hypothetical question. I cannot speculate on this. Let us wait and see,” he said.

Nasdaq-listed Infosys on Monday agreed to buy the British consultancy for £407.1 million ($753 million). It currently has irrevocable undertakings from the director-promoter group to vote in favour of Infosys in the deal, to the extent of 18.1 per cent of Axon’s shareholding.

According to him, the objective of the acquisition was to leverage Axon’s leadership position (in SAP), its management and consulting strengths. The overlap between the two companies in terms of customers would be minimal. The acquisition also gives an opportunity for Infosys to get into new segments like public sector, he said.

Mr Gopalakrishnan said the macro economic environment continues to be challenging. There are uncertainties in the global environment that will have an impact. But the information services business is growing. “The growth story is still valid for us.”

Explaining, he said that there is growth by industry, by geography and by services. There are significant opportunities for the IT industry to continue the growth. Bulk of the business comes from North America and Europe and both are not saturated, he said.

Mr Shibulal, Chief Operating Officer, clarified that pricing continued to be flat for the company. While the future looks good, there is pressure in the short term, he said.

More Stories on : Mergers & Acquisitions | Software | Infosys Technologies Ltd

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