Axon okays HCL's scheme of arrangement

UK-based SAP consultancy Axon Group has approved the scheme of arrangement to implement its acquisition by HCL EAS, an indirect wholly owned subsidiary of HCL Technologies.

HCL Technologies got 99.9 per cent votes in its favour and the company has acquired 34.7 million shares of the British firm. In October this year, HCL acquired almost 10.43 per cent of Axon’s shares at less than 650 pence per share.

“We made some strategic moves like acquiring Axon’s shares at less than the quoted price,” said Vineet Nayar, CEO and Member of the Board, HCL Technologies.

Commenting on how strategic this deal is in the current slowdown, Nayar said, “Axon is a pure play SAP player servicing the government, defence and utilities verticals. Outlook for the company is positive and it is on a healthy course in meeting its guidance. The slowdown will not change Axon’s good track record.”

Nayar said that due to the currency fluctuations, the ticket size of the deal is now lesser than 441.1 million pound, but because size of the SAP market is large, there will be opportunities in moving shares from other global vendors to this combined entity.

HCL will announce the final acquisition on 15 December, 2008.