Homegrown information technology (IT) services company 3i Infotech has announced the sale of its software products business to Mumbai-based Azentio Software, a newly formed wholly-owned subsidiary of global private equity firm Apax Partners.
The deal has been finalised for a total consideration of Rs 1,000 crore 3i Infotech said in a statement. The sale, subject to regulatory and shareholder approvals, is expected to close in early 2021, it said.
Following the transaction, all of 3i’s product lineup in the software segment, including the core assets for customers in banking, financial services and insurance (BFSI) verticals, will be taken over by Azentio. The technology services unit, it said, will continue to operate as earlier and will pursue strategic growth initiatives.
Founded in 1993 and headquartered in Mumbai, 3i Infotech provides IT services and IP-based software solutions to more than 1,200 businesses across various industry verticals in 50+ countries. The company has over 5,500 employees and a strong customer base in North America, India, Asia Pacific, the Middle East and Africa, South Asia and Europe.
“I foresee a very exciting future for both the IT services and the software products business,” Padmanabhan Iyer, managing director and global CEO of 3i Infotech, said. “Both businesses will have the resources to capitalise on market opportunities and build long term value for employees, customers and shareholders.”
On the buyer side, Apax plans to invest in the Azentio’s R&D, sales and marketing efforts. It also aims to improve the current products and launch new ones, with a focus on enhancing the service level for all customers.
The equity firm will use the new firm for merger and acquisitions in the BFSI software space, the statement added.
Commenting on the development, Shashank Singh, partner and head of the 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. 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.”