Axon Approves HCL Technologies' Buyout

The board of UK-based consultancy firm Axon Group has approved the £441.1-million acquisition bid by Indian IT major HCL Technologies. At the general body meeting, the majority shareholders voted in favour of HCL's 650 pence a share cash offer.
Vineet Nayar, chief executive officer, HCL Technologies, commenting on the vote, said, "We are very pleased that the Axon shareholders have approved HCL's offer for the company. This acquisition continues to make sound strategic sense for HCL especially in the current macro economic situation."

"Axon has achieved a significant degree of success in creating a leading SAP implementation services business which when combined with HCL's enterprise applications services, offshore capabilities and complementary market presence in North America, Europe and Asia will help drive the ongoing expansion of product and service capabilities in the global IT Services sector," added Nayar.

As HCL Technologies has already acquired 10.43 per cent shares of Axon from the open market at less than 650 pence a share, therefore Nayar said the overall deal size would now be lower than the initially-announced £441 million.

HCL will announce the final acquisition on 15 December 2008.