3i Infotech to sell Western Europe subsidiary to Objectway Financial Software1 min read . Updated: 24 Dec 2014, 12:17 PM IST
3i Infotech said the sale is in line with the group's strategy to sell its non-core assets and use the cash generated to reduce debt
Mumbai: Shares of 3i Infotech Ltd, a mid-sized software solutions firm, rose almost 10% on Wednesday after the company signed an agreement to sell its subsidiaries 3i Infotech (Western Europe) Ltd and 3i Infotech (Flagship-UK) Ltd to Objectway Financial Software SpA.
In a statement to the BSE, 3i Infotech said that the sale of its Western Europe unit is in line with the group’s strategy to sell its non-core assets and investments and use the additional cash generated to reduce debt and for business purposes.
The transaction is expected to close on Wednesday, according to a press release on Objectway’s website, which did not disclose financial details. Objectway is a large financial services software provider to Europe and the Middle East and Africa (EMEA) regions.
3i Infotech Western Europe has over 25 years of experience delivering investment management software solutions to 30 active clients who are mid-market UK firms. After the deal closure, 3i Infotech Western Europe’s product offerings will be integrated into the broader Objectway Financial Software product suite.
“This acquisition strongly reinforces our position and accelerates our commitment to expand within the UK market, the largest in EMEA," said Luigi Marciano, founder and chief executive officer of Objectway Group.
At 10.35 am, shares of 3i Infotech were up 8.87% at ₹ 8.35 apiece, while the benchmark Sensex was down 0.10% at 27,478.92 points.