New Delhi: The software products business (3i infotech)  will be acquired by a newly-formed firm named Azentio Software, wholly-owned by the Apax Funds, a statement said.

                                 3i-infotech-to-sell-product-biz-to-apax-





The transaction, subject to shareholder approval and relevant regulatory approvals, is expected to close in early 2021, it added.   (3i infotech) 

“Following the transaction, 3i Infotech will continue to pursue strategic growth initiatives in the IT services business, supported by a stronger balance sheet.

“The transaction will revitalise growth and accelerate value creation for all stakeholders of 3i Infotech, including customers, employees and shareholders,” the statement said.

The newly-formed entity will be supported by Apax Funds, with increased investments in R&D and sales and marketing, it added.

Azentio Software will focus on investing in its current product portfolio, launching new products and providing best in class service levels to all customers. The Apax Funds will also use Azentio as a platform to do M&A across the BFSI software space in the region, the statement said.

Since its incorporation in 1993, 3i Infotech has been providing a range of IT services and software products to over 1,200 customers across multiple industry verticals in over 50 countries. The company operates through two business segments: Services and Software Products. 

The Services segment, under the brand ‘Altiray’ provides consulting services, business optimisation services and such solutions.  (3i infotech) 

The Software Products business comprises a comprehensive set of core software products for customers in banking, financial services and insurance (BFSI) verticals and includes key products such as Kastle (universal banking platform).

“Today’s announcement is transformative and value accretive for all stakeholders of 3i Infotech. I foresee an exciting future for both the IT services and the software products business.

“Both businesses will have the resources to capitalise on market opportunities and build long term value for employees, customers and shareholders,” said Padmanabhan Iyer, MD-Global CEO, 3i Infotech.

Shashank Singh, Partner and Head, India office at Apax Partners, said increasing technology spend on core software systems across the BFSI industry and ERP space is driving rapid growth in the enterprise software market in the region.

As per a regulatory filing, the turnover of the Product Division is Rs 442.98 crore for year ending March 31, 2020, which constitutes 38.81 pc of the consolidated turnover/revenue for the fiscal.

Net worth of Product Division was Rs 323.03 cr as on March 31, 2020. The rationale for the slump sale, as per the filing, was to facilitate  (3i infotech)  repayment of all its existing debt exposure; to scale up other existing business segments, including providing IT services to customers across sectors and geographies.