Apax buys software business from India's 3i Infotech
Apax Partners has agreed to acquire the software products business of Indian IT provider 3i Infotech for INR10 billion ($136.6 million). It will be renamed Azentio Software.
Azentio specializes in vertical-specific banking, financial services and insurance (BFSI) software. Its product suite includes a number of branded platforms that cover core BFSI capacities as well as enterprise resource planning (ERP), asset management, financial crime detection, and compliance.
Revenue for 3i’s products division came to INR4.4 billion during the 12 months to March, which represented about 39% of the company’s consolidated revenue for that year, according to a filing. 3i described the net worth of the products division as INR3.2 billion.
Apax plans to support Azentio through further investment in R&D, sales, and marketing, as well as the development of the current product portfolio and the launch of new products. The private equity firm will also use the company as a platform for M&A across the BFSI software space in the region.
“Increasing technology spend on core software systems across the BFSI industry and ERP space is driving rapid growth in the enterprise software market in the region,” Shashank Singh, a partner and head of the India office at Apax, said in a statement. “We are excited to unlock Azentio’s potential and help transform the business into a true regional leader in the software space.”
Apax says it considers BFSI and ERP software as key focus areas. Notable activity in this space in India includes the acquisition of a 23% stake in Zensar Technologies for $129 million, which provided an exit for Electra Partners, and the acquisition of GlobalLogic for $420 million, much of which was exited to Partners Group last year.
Last year, Apax agreed to pay $200 million for a significant minority stake in Fractal Analytics, an India and US-based data services provider for the financial services and retail sectors. According to The Economic Times, the transaction will give Apax a 45% interest in the company.
The Azentio transaction remains subject to shareholder and regulatory approvals. It is expected to close in early 2021.
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