3i infotech to acquire 51 per cent in Professional Access
3i infotech has signed an agreement to acquire a 51 per cent stake in Professional Access, US-based e-commerce solution provider, for $12 million, reports HT Correspondent.india Updated: Nov 13, 2006 19:44 IST
Betting on the global delivery model and in a bid to increase its revenue mix, 3i infotech has signed an agreement to acquire a 51 per cent stake in Professional Access, US-based e-commerce solution provider, for $12 million.
This is with a view to target the banking financial services insurance (BFSI) segment and the retail sector. The acquisition of the remaining 49 per cent is slated over the next two years.
The company has also acquired a 51 per cent stake in New Delhi-based eEnable Technologies, a provider of business intelligence and data warehousing solutions to the BFSI segment.
Commenting on the acquisition, V Srinivasan, Managing Director and CEO, 3i infotech said: "The acquisition of Professional Access is a strategic one for 3i infotech and is a valuable addition to our suite of service offerings. With their impressive customer base and reach in the US, Professional Access will allow us to further penetrate the US market."
"Revenues from the banking and financial services segment will go up to 75 per cent in the current fiscal," CFO Amar Chintopanth told HT.
Professional Access has its offshore development centres in India, which specialise in e-commerce and have a turnover of $24 million.
This is the company's second acquisition in the BFSI segment. Earlier in March, it acquired Datacons, a Bangalore-based software products company that offers niche products for the Mutual Funds segment.
The company plans to develop products and solutions specifically for these verticals. According to the Ministry of Economy, Trade and Industry, the US b2b e-commerce market is worth $0.92 trillion.
"This acquisition will help 3i infotech as Professional Access follows a global delivery model that will allow it to have a products and services revenue mix. Further, 3i will have access to clients such as JP Morgan, Goldman Sachs, Duke Energy, Citibank and the likes," said an analyst from a Mumbai-based brokerage.