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3i Infotech sells business arm for $137 million
IT firm agrees to sell its US-based unit to an affiliate of Cerberus Capital, a private investment firm.
Bangalore 3i Infotech Limited, a global information technology company, 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, L.P., one of the world's leading private investment firms, for USD 137 million.
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 V.Srinivasan, Managing Director & Global CEO, 3i Infotech. "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 organisation interested in growing it as an independent company," he said.
Tim Price,a Managing Director and spokesperson, Cerberus, 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, Chief Executive Officer and President of the 3i Infotech US-based Global Billing and Payments division.