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3i Infotech sells billing, payments unit for $137 mn

3i Infotech sells billing, payments unit for $137 mn
PTI
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First Published: Mon, May 16 2011. 12 07 PM IST
Updated: Mon, May 16 2011. 12 07 PM IST
Bangalore: Global information technology company 3i Infotech Limited has signed an agreement to sell its US-based Global Billing and Payments unit, consisting of Regulus Group and J&B Software, to an affiliate of Cerberus Capital Management LP for $137 million (Rs617 crore).
3i Infotech acquired J&B Software in 2007 and Regulus Group in 2008, and the companies were integrated to form the Global Billing & Payments unit of 3i Infotech, according to a company statement.
The transaction is expected to close within the next 60 days, subject to customary closing conditions and any regulatory approvals.
“The divestment reduces the leverage and strengthens the balance sheet of 3i Infotech,” said 3i Infotech managing director & Global CEO V. Srinivasan.
“This enables 3i Infotech to go back to its roots as a significant IT products and services player while at the same time allowing the billing and payments unit to be acquired by an organization interested in growing it as an independent company.”
Cerberus managing director and spokesperson Tim Price said: “Cerberus has the financial resources and operational expertise to help this business build additional value through operating efficiencies and growth. As a standalone entity, the company will continue to focus on delivering the best products and highest quality services to its clients.”
“We are looking forward to partnering with Cerberus on the next stage of our company’s growth,” said Kathy Hamburger, the chief executive officer and president of the US-based Global Billing and Payments division.
Cerberus Capital Management is a private investment firm with $23 billion of capital under management.
Shares of 3i Infotech were trading at Rs50.35 in early trade on the BSE, up 0.70% from the previous close.
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First Published: Mon, May 16 2011. 12 07 PM IST
More Topics: 3i Infotech | IT | Technology | Software | Stake sale |