IT services firm 3i Infotech on Monday said that the company’s software product business has been acquired by private equity firm Apax Partner for a consideration of about Rs 1,000 crore.
The deal values the software business higher than the market capitalisation of the entire company (3i Infotech) which stands at around Rs 908 crore.
According to the joint statement issued by 3i Infotech and Apax partner, the software products business will be acquired by a newly formed company named Azentio Software, wholly-owned by the Apax Funds. The transaction, subject to shareholder approval and relevant regulatory approvals, is expected to close in early 2021.
According to reports, 3i Infotech’s software product business used to generate $60 million in annual revenue. After carving out the business and selling it off, 3i Infotech would continue to focus on its services business. “Today’s announcement is transformative and value accretive for all stakeholders of 3i Infotech,” said Padmanabhan Iyer, Managing Director & Global CEO, 3i Infotech. “I foresee a very exciting future for both the IT services and the software products business. Bo