United States business software giant Oracle said on Tuesday it was buying a controlling stake in Indian firm i-flex solutions for just over $900-million.
The Mumbai-based i-flex, which employs more than 5 500 people worldwide, specialises in providing software and services to banks globally.
Oracle said it was buying a 41% stake in the Indian firm held by Citigroup Venture Capital International for $593-million.
In accordance with Indian company law, Oracle will launch a tender for an additional 20% of i-flex shares, worth a total of $316-million, and hopes to wrap up the deal by the end of the year.
”i-flex is the hottest software company in the banking industry, signing more new customers than any other banking software company in each of the last three years,” Oracle chief executive Larry Ellison said.
He said banking was a strategic focus for Oracle, with nine out of the top 10 banks already running the company’s Enterprise Resource Planning applications.
”Oracle’s overall application strategy is to go beyond ERP and offer customers richer industry-specific functionality. i-flex gets us there in banking,” Ellison said.
Oracle president Charles Phillips will join the i-flex board, but the company will otherwise retain its Indian management team, the United States giant said.
”We have enjoyed a long, highly successful partnership with Oracle, and this transaction will be a logical evolution of our relationship,” i-flex managing director Rajesh Hukku said.
”Aligning with Oracle, we can jointly offer an unmatched value proposition to our global customers with truly integrated solutions across the front, middle and back office,” he said. – Sapa-AFP