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UK-based SAP consulting company, Axon Group is in bid process and two major IT companies from India are in race for it. Infosys has already bid for it, and HCL is looking to do a counter bid. Sources divulged that HCL Tech has appointed Merrill as advisor and StanChart as financiers to the counter bid. The financiers reportedly are boarding in London where Axon is based.
On the other hand, another bidder, Infosys is ready with its plan. According to Kris Gopalakrishnan, CEO of the Infosys, if everything goes accordingly, the deal would be complete in November or early December. Notwithstanding what Infosys does say, according to Milan Sheth, Partner-Advisory Services, (Ernst & Young), the whole fleet of services that Axon could offer would definitely be beneficial & revenue enhancing for HCL.
However, some market analysts say that that bidding is alright, but where HCL will get money from? Currently, the company has a cash of $88 million, which in money market is equal to $483 million. In case of any shortage of cash, the firm will have to borrow the same from some financial agencies. The deal is crucial for HCL as it has just $150 million worth business in SAP, which is nowhere in comparison to Infosys's $1 billion.
However, some market analysts say that that bidding is alright, but where HCL will get money from? Currently, the company has a cash of $88 million, which in money market is equal to $483 million. In case of any shortage of cash, the firm will have to borrow the same from some financial agencies. The deal is crucial for HCL as it has just $150 million worth business in SAP, which is nowhere in comparison to Infosys's $1 billion.
