Posted by Mumbai: 3i Infotech will sell its software products business for Rs 1000 crore (approx $136 million).
3i Infotech has signed a pact to sell its software products business for Rs 1000 crore to Azentio Software. Private equity firm Apax Funds, wholly-owned Azentio Software.
The deal is subject to shareholder approval and regulatory approvals and expected to close in early 2021. The Rs 1000 crore deal would help 3i Infotech to repay its corporate debt worth Rs 800 crore as per reports.
Also, it will help to improve the company’s balance sheet and push up its stock price that has fallen drastically in the past decade.
In fact, 3i Infotech’s stock price has remained in a single-digit since May 2012 and has slipped around Rs5 or even lesser in recent years.
Although 3i Infotech’s market capitalisation is Rs 954 crore, its continuing poor performance and declining stock price in the last 10 years has earned it a penny stock status.
The Mumbai based 3i Infotech servers over 1200 multi-industry customers across 50 countries spanning Asia, the Middle East and Americas.
In terms of 3i Infotech’s software products business is concerned, it is largely focused on the BFSI sector.
The company runs its services business under the brand Altiray. It provides consulting and business optimization services covering the areas of application development, mobility, data analytics, big data and testing.
Kastle – a universal banking platform and AMLOCK – a financial crime detection and compliance software suite — are among 3i Infotech’s software products. Premia Astra – a core insurance software, MFund Plus – an asset management platform and Orion – an enterprise resource planning (ERP) software.
“Today’s announcement is transformative and values accretive for all stakeholders of 3i Infotech,” said Padmanabhan Iyer, MD and Global CEO, 3i Infotech.
“I foresee a very exciting future for both the IT services and the software products business,” added Iyer.
From Azentio Software perspective, 3i Infotech’s software products business will further expand its product portfolio and serve vertical-specific customers.
“ERP, core Banking and Insurance software are key areas of focus for the Apax Funds, with numerous successful investments to date,” said Umang Kajaria, Partner – Apax Partners.
“Azentio provides critical, vertical-specific software that allows its customers to stay competitive,” added Kajaria.