The UK-based Axon Group has been acquired by HCL Technologies for £441 million ($658 million), marking the largest ever tech buyout by an Indian firm. HCL Axon, the new entity formed after the buyout, is now chasing outsourcing deals worth $1.2 billion.

The acquisition makes HCL's SAP business three times bigger than that of Satyam, its closest SAP competition in the domestic market. Satyam's revenues from SAP implementation is said to be about $150 million.

HCL Technologies CEO Vineet Nayar said, "The buy is more relevant today than yesterday as customers are seeking new solutions. They don't want to cut costs but want to get more out of them. Axon will have a significant impact on our global revenues, margins and market share. It will also put India on the global SAP map. Globally, SAP services is a $26 billion market opportunity, with an offshorable portion of $7.3 billion of which currently India attracts less than 6%. "So it's a huge market out there waiting for us to explore," added Nayar.

Steve Cardell, the former Axon CEO, who will now be HCL Axon president, stated, "Axon's strengths of blueprinting and implementation fit well with HCL's operational capabilities."

HCL raised a £400-million loan from Standard Chartered to finance the deal. It also picked up a 10.43% stake in Axon from the open market for £42.28 million. Axon has SAP revenues of over $500 million while HCL currently has $100 million.