HCL AXON t/o a SAP practice for $7.7 mn

NOIDA: HCL AXON, a division of HCL Technologies, which provides Business Transformation consultancy and services through implementation and support of SAP technologies, has announced a strategic partnership with UCS Group and a take over of the UCS Group’s Enterprise Solutions SAP practice.

The acquired practice is a division of UCS Solutions and offers Tier 1 Retail and wholesale SAP project implementations. The carve-out transaction entails an all cash consideration of $ 7.7 mn and growth centered earn-out over the next two years, a press note tells.

The carve-out is expected by the company to deepen HCL AXON’s SAP capabilities with best-in-class SAP Retail Industry Solutions (IS) , will bring proven competency in IS Retail and further increase the global delivery capabilities, including a significant boost to the company’s market presence in South Africa.  This partnership will allow UCS Group to grow its annuity services business internationally and to support the growth of its SAP All in One business.

 “We have a stated strategy to bring strong customer focused vertical propositions and have identified the retail market as a major opportunity.  Completing this partnership accelerates our ability to offer the market a combination of extensive SAP IS retail capability and track record which coupled with our own retail experience creates a compelling customer proposition”, said Steve Cardell, President, HCL Axon.

The effective date of this transaction is 1 August 2009 after fulfillment of conditions precedent to this transaction.