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3i Infotech Buys Controlling Stake In Two Companies

Global IT solution provider 3i Infotech has acquired controlling stake in two companies that will help it increase its client base and revenues from developed markets. The company has acquired 51 per cent stake each in US-based Professional Access (PA) for $12 million and Delhi-based E enable for Rs 5.11 crore.

PA is an IT solutions provider and specialises in providing e-commerce services for the banking, financial services and insurance (BFSI) and retail segment. The company is a profitable company with revenues of $24 million, 3i Infotech Managing Director and Chief Executive Officer V Srinivasan told reporters here today. 3i Infotech has a right to acquire the remaining 49 per cent stake over a two-year period. PA has around 500 employees and has a “commendable presence” in the US. “The acquisition of PS is a strategic one for us and is a valuable addition to our suite of service offerings. The company has a clientele that includes Citibank, Goldman Sachs and J P Morgan, and this will help in strengthening our presence in developed countries,” he said.

The company has also acquired E enable, a firm engaged in providing business intelligence (BI). E enable has annual revenues of $1.50 million (Rs 6.50 crore). 3i Infotech’s Chief Financial Officer Amar Chintopanth said that the US acquisition was funded from the recent foreign currency convertible bond of $70 million, while the Indian acquisition was funded from internal accruals.

Earlier, 3i Infotech had acquired Datacons, a mutual fund products company for $5 million, 51 per cent stake in BPO player Delta Services for $28 million and 100 per cent stake in London-based software products company Rhyme Systems.