India's Infosys to buy Axon Group in all-cash deal

BANGALORE, Aug 25 (Reuters) - Infosys Technologies (INFY.BO: Quote, Profile, Research), India's No. 2 software services exporter, on Monday said it had agreed to buy UK-based consultancy services firm Axon Group Plc AXO.L in an all-cash deal valued at 407.1 million pounds. Nasdaq-listed Infosys (INFY.O: Quote, Profile, Research) expects the deal to be completed by November 2008, it said in a statement.

It said the acquisition would "accelerate the achievement of some of Infosys' current strategic corporate objectives, including the continued expansion consulting capabilities".

Last month, Infosys, which develops applications, designs supply chains and offers back-office services, reported a 21 percent rise in quarterly profit but warned of challenging times ahead as its major Western clients battle weakening economies.

Ahead of the announcement, shares in Infosys, which the market values at $22 billion, ended 0.5 percent higher at 1,703.05 rupees in a Mumbai market .BSESN that closed up 0.3 percent. (Reporting by Sumeet Chatterjee; Editing by John Mair)