IT services firm 3i Infotech has announced that the company’s software product business is brought by private equity firm Apax Partner for a consideration of about Rs 1,000 crore.

According to the joint statement given by 3i Infotech and Apax partner, the software products business will be acquired by a recently established firm named Azentio Software, owned by the Apax Funds. The transaction, subject to shareholder approval and relevant regulatory approvals, is expected to close in early 2021.

The deal values the software business higher than the market capitalization of the entire company which stands at around Rs.908 crore.
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.”

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.

Padmanabhan Iyer, Managing Director & Global CEO, 3i Infotech says, “Today’s announcement is transformative and values accretive for all stakeholders of 3i Infotech." He adds, "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 employecapitalizeers and shareholders.”

The software business focuses on core BFSI with clients in the Middle East, South East Asia, and India growing at six to eight percent CAGR. It has a core insurance platform called Premia, a core lending platform for banks and NBFCs called Castle, an anti-money laundering application called AM Lock, a core fund management application called M-Fund, and an ERP software application called Orion among others.

3i Infotech was established in 1993, it has over 5500 employees across 12 countries with customers located in more than 50 countries across four continents.