The trivial answer is "more backslashes, fewer spaces":
echo "AXIS2C_HOME=/usr/local/Axis2C" | sed 's/\(^AXIS2C_HOME=\)\(.*\)/\2 \1/'
But the broader answer is, "wait, what are you trying to do?" Do you want the key-value pairs to be split into useful variables, or are you really just trying to munge the input into the reverse syntax in order to feed it to something else?