Mid-cap information technology firm KPIT Cummins Infosystems Ltd has sold its diversified financial services business to Infrasoft Technologies as it plans to focus on select core sectors. Backed by Baring Private Equity Partners India, Infrasoft targets global banking and financial services sectors. Although the deal size has not been disclosed, the payment will be based on milestones over the next 4-5 quarters.
"We will transfer majority of the existing diversified financial services (DFS) customer contracts, along with corresponding account management and delivery teams, to Infrasoft Technologies over the next four quarters. But this doesn't include transfer of any key management members, significant assets or accounts receivable/debtors," KPIT Cummins said in a statement.
KPIT plans to focus on select verticals including automotive & manufacturing, energy & utilities and defence & government. The company, which had raised funding from ChrysCapital earlier this year, also acquired CMS Group's Systime Global Solutions for $22.77 million in 2011. Systime's key clients include Bharti Airtel, AT&T, Emirates and Lufthansa.
Infrasoft is based in Mumbai, with its global delivery centre located in Chennai. The company is led by its founder MD Hanuman Tripathi and has delivered close to 200 software services projects during the past five years.
In 2007, Baring Private Equity Partners India invested $25 million (Rs 100 crore) in Infrasoft for a significant stake. Its top clients include Sahara India Life Insurance Company Ltd, First Gulf Bank, Ahli United Bank and Bank Simpanan Nasional (BSN).