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Axon directors will unanimously recommend the company's shareholders vote in favour of the takeover bid.
The takeover comes admid growing competiton from overseas companies which outsource and support more than just SAP solutions, presenting a threat to niche companies such as Axon.
The Infosys cash offer also provides Axon shareholders with a certainty they lacked because of the cyclical nature of the IT services industry.
Roy Merritt, non-executive chairman of Axon, said of the acquisition: "Against the background of the global economic environment and increasing consolidation in the IT services agency, the combination with Infosys represents a compelling proposition. The offer represents an attractive cash premium and provides certainty of value today for Axon shareholders."
Infosys CEO Kris Gopalakrishnan said: "The strategic combination of our groups will accelerate the realisation of our common aspirations - that of becoming the most respected provider of transformational SAP related services in the global marketplace.