Infosys richer by Rs 18 cr on failed Axon bid

Software Services firm Infosys Technologies today said it has recorded a net gain of Rs 18 crore from its failed attempt to acquire British consultancy Axon Group Plc.

The Indian IT major spent a total of Rs 15 crore towards the failed deal, but in the process received Rs 33 crore from the UK firm, asinducement fees.

"Miscellaneous income of Rs 29 crore during the quarter ended December 31, 2008 includes a net amount of Rs 18 crore, consisting of Rs 33 crore received from Axon Group Plc, as inducement fees offset by Rs 15 crore of expenses incurred towards the transaction," the company today said while announcing its third quarter result. 

Two of India's leading software services firm were in the race to acquire the London Stock Exchange-listed Axon, but last month HCL Technologies outbid Infosys and acquired the British firm.

HCL Technologies completed the acquisition of UK-based consulting Axon Group Plc for £441.1 million, making it the largest acquisition in the tech space by any Indian company.

Infosys was also in the lead to acquire Axon and had made a cash offer of £407.1 million for the same. But Infosys was subsequently outbid by HCL Technologies.

Axon Group Plc provides consulting services to customers such as British Petroleum and Xerox Corp and has offices in the UK, North America, Malaysia and Australia, with about 2,000 employees.