Infotech Enterprises acquires Daxcon Engineering

Hyderabad : Infotech Enterprises Limited (IEL), a global technology solutions provider with headquarters in Hyderabad, India, announced today that it’s wholly owned subsidiary Infotech Enterprises America Inc., acquired Daxcon Engineering Inc. (Daxcon) located in Peoria, Illinois.

Infotech is an acknowledged global leader in the Engineering Services Outsourcing (ESO) market space and is among the Top-5 providers of these services in the US. Within ESO, Infotech has established itself very strongly in many verticals, especially in Aerospace, Rail, Energy and HiTech.

Towards achieving its vision of ‘Delivering innovative solutions together for a better future’ and achieving the goal of being $1 Bn enterprise, Infotech has embarked on the following key strategic initiatives:

- Strengthen domain expertise in new market segments within existing verticals
- Establish a global network of design engineering centers that offer our customers the right mix of proximity, skill and price
- Forge strategic, long-term relationships with large engineering companies

As a part of executing these strategic initiatives and after carefully evaluating several strategic options, Infotech has acquired Daxcon in an all-cash deal.

Established in 1996, Daxcon is a pure play engineering Services Company focused on off-highway heavy equipment engineering (heavy, mining, construction and farming equipment) and commercial vehicles. Headquartered in Peoria, IL, Daxcon has over 150 people and counts industry leaders in each segment as its long-term customers.

Commenting on the acquisition, Mr. BVR Mohan Reddy, Chairman & Managing Director of Infotech Enterprises said, “Heavy equipment engineering and commercial vehicle sectors are important growth market for us. With this acquisition Infotech would inherit deep domain expertise in these segments, strong long-term customer relationships and a US delivery capability – all of which are very critical to accelerated growth. We were impressed with the management and technical team at Daxcon and their vision towards attaining leadership position. Combined with our ability to scale customer relationships and mature processes, we are confident that we will leverage this acquisition to create a strong momentum and further enhance our leadership position in the Engineering Services Outsourcing market space.”

Mr. Michael Daxenbichler, Founder and President of Daxcon said, “We have found an excellent partner in Infotech Enterprises and are very excited about joining a global leader focused on engineering services. Infotech’s larger geographic presence and reach complement our strong relationships in the heavy equipment engineering and commercial vehicle verticals. We are confident that our combined and complementary strengths will further enhance the leadership position in these vertical segments. During our discussions over the last few months, we recognized the opportunity to leverage the reach of Infotech to rapidly build a global scale. The entire Daxcon team is looking forward to this opportunity and our customers have endorsed the merger with Infotech.”

In a statement Mr. Krishna Bodanapu, Senior Vice President – Engineering said, “According to the NASSCOM BAH report on Design Engineering Services, global engineering spend in the heavy equipment engineering and commercial vehicles segments is at around $100 Billion with offshorable spend estimated at around $9 Bn by 2020. with this acquisition we will become a dominant player in these segments as well adding to our dominant position in the aerospace, rail and energy segments. Being a pure play engineering Services Company, Daxcon fits very well into Infotech’s business model and culture. We are delighted to welcome Mr. Daxenbichler and the entire Daxcon team to Infotech.”