Wednesday, September 19, 2007

Infosys linked to buyout talks for UK's Sage

Infosys Technologies is in the thick of yet another European buy-out rumour --this time involving the UK-based Sage Group

British publications have reported that Sage's stock price on the London Stock Exchange went up on Tuesday on talk that Infosys, CapGemini orsoftware giant Microsoft may be interested in acquiring the company

The 13,000-strong Sage Group posted a turnover of £936 million during the last calendar year. It is estimated to have a market capitalisation of over £3 billion

source: timesofindia

1 comment:

Gaurav Mehta said...

I will be really really surprised if Infy actually acquires Sage. The management has re-iterated at numerous occasions that they are not looking at companies with more than $500m of Market Cap. Moreover, with this kind of acquisition, the onsite:offshore ratio will further increase, only decreasing the margins.
I believe, Infy will go for some company which has got decent amount of consultancy revenues. This will be essentially because the company has not been successful in ramping up their consultancy division.
Having said that, if Infy has to grow at the present run-rate, it can only happen through inorganic growth. Americas is already saturated and Europe is difficult to penetrate, since they don't really get too cozy with Indian companies so soon. Time will reveal what story Infy has to sell to the market.
Hope you have been enjoying this blog as much as we love putting stuff in it.