Axon green lights HCL buy-out

IT services firm's shareholders approve acquisition by subsidiary of Indian outsourcing giant

IT services company Axon has announced its shareholders have approved its £441m acquisition by HCL EAS.

An extraordinary general meeting was held today by Axon and the buy out by HCL EAS, a wholly-owned subsidiary of Indian outsourcing behemoth HCL Technologies, was given the green light. The path to the deal became seemingly unobstructed last month after HCL rival Infosys pulled out of the running, claiming it would not match the £441m offer. London Stock Exchange trading in Axon shares will cease sometime next month.

HCL Technologies chief executive Vineet Nayar 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. In addition this acquisition provides HCL with scale, significant revenue synergies and exposure to Axon’s considerable client base where the majority of revenues are generated from defensive sectors including the UK public sector.”