IT firm 3i Infotech on Monday announced acquiring 51 per cent stake in US-based Professional Access and Indian business intelligence solution provider 'E enable' for a total consideration of close to Rs 60 crore (Rs 600 million).
The acquisitions would enable 3i Infotech to enhance its offshore business capabilities and access blue chip customers, company CEO and MD V Srinivasan said.
The acquisitions are likely to be closed in a couple of months, he added. Professional Access, specialises in providing software solutions to banking, financial as well as retail sectors, and has 500 people on its payroll.
3i has acquired 51 per cent stake for about Rs 55 crore (Rs 550 million) and has the right to buy remaining stake over a period of two years. During the last fiscal, PA's revenues stood at Rs 110 crore (Rs 1.1 billion) with a net margin of about 10 per cent.
"PA will enhance our offshore business capabilities. Moreover, it has got a good client list in the BFSI space including Citibank and JP Morgan," Srinivasan said.
'E enable' is a business intellligence solution provider with Rs 6.50 crore (Rs 65 million) revenues and an employee strength of 50. 3i bought the stake for a total consideration of Rs 5.11 crore (Rs 51.1 million).
"The acquisition would be funded from the internal cash reserve that raised through two FCCB issues," 3i Infotech CFO Amar Chinto Pant said. 3i had raised $70 million through two FCCB issues in March and a couple of months ago.