Mumbai-headquartered technology firm 3i Infotech said that it has entered into an agreements to sell its software products business to private equity advisory firm Apax Partners for Rs 10 billion (Rs 1000 crore)
The Software Products business will be acquired by a newly formed company named Azentio Software, wholly owned by the Apax Funds. The transaction is expected to close in early 2021.
3i Infotech operates through two business segments — Services and Software Products. The Services segment, under the brand Altiray, provides consulting services, business optimization services and an extensive expertise in mobility, data analytics, big data, testing and application development.
The Software Products business comprises a set of core software products for customers in BFSI verticals and includes key products such as Kastle (universal banking platform), AMLOCK (financial crime detection and compliance software suite), Premia Astra (core insurance software), MFund Plus (asset management platform) and Orion (enterprise resource planning software).
The company said that following the transaction, 3i Infotech will continue to pursue strategic growth initiatives in the IT services business. While the newly formed Azentio Software will be supported by Apax Funds, with increased investments in R&D and sales and marketing. Azentio Software will focus on investing in its current product portfolio and the Apax Funds will also use Azentio as a platform to do M&A across the BFSI software space in the region.
“Today's announcement is transformative and value accretive for all stakeholders of 3i Infotech. I foresee a very 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, Managing Director & Global CEO, 3i Infotech.
“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. The newly formed company, Azentio, has a strong portfolio of feature rich products that run the core operations for customers. We are excited to unlock Azentio's potential and help transform the business into a true regional leader in the software space,” said Shashank Singh, Partner and Head of the India office at Apax Partners.