UK buy bolsters India's Infosys

Shares in Indian outsourcing giant Infosys have risen after it said it had agreed to buy UK consulting firm Axon Group for £407.1m ($753m).

Axon shares also got a boost from the deal, which should give Infosys access to new European clients.

The Indian firm relies on the US for around 60% of its business but wants to cut this to 40% as the downturn hits outsourcing deals.

Its 560 clients include Goldman Sachs, Philips Electronics and ABN Amro.

On Tuesday, Axon reported a 21% rise in pre-tax profit to £16.3m in the first half of the year.

The acquisition is expected to be completed in November.

Infosys shares rose more than 2% on the Mumbai stock exchange, while Axon rallied 20.4%, or 102.5 pence, to 605 pence in London.

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