HCL Tech launches counter bid for UK's Axon

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New Delhi, Sep 26 (UNI) Software services major HCL Technologies Ltd today said it has launched a counterbid for UK-based SAP consulting firm Axon Group at a valuation of about 441.1 million pounds.

HCL's offer to pay 650 pence in cash for each Axon share compares with the bid of 600 pence from Infosys Technologies (about 8.3 per cent higher) that valued Axon at around 407 million pounds.

Both offers include Axon's interim dividend.

''We see Axon as ... (a) transformational opportunity for HCL to become a significant player in the SAP services space,'' HCL Technologies Chief Executive Vineet Nayar said in a statement.

Indian outsourcing firms like Infosys and Tata Consultancy Services are expanding in Europe, Asia, West Asia and Latin America to cut dependence on the US market, which accounts for more than half the sector's revenue.

HCL earns around 29 per cent of its revenues from Europe.

HCL Technologies plans to fund the bid through a 400 million pound loan and cash in hand, Mr Nayar said. It has committed loan facilities from Standard Chartered, the statement said.

''We see Axon as one such transformational opportunity for HCL to become a significant player in the SAP services space...It would help accelerate the process of integration between the two teams,'' said Mr Nayar.

Axon provides process consultancy services to large organisations that have chosen SAP as their strategic enterprise platform. It has a diversified customer base across the UK, North America, and Asia and has about 2,000 employees.

UNI SR MP NS2026

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