3i Infotech buys Datacons
3i has products for banking, financial services and insurance sectors, while Datacons offers software products for mutual funds and FIIs.india Updated: Apr 17, 2006 17:46 IST
Mid-sized Indian software firm 3i Infotech said on Monday it had acquired Bangalore-based Datacons to provide products for mutual funds.
The acquisition for an undisclosed amount will partly help profits in the fiscal first-quarter ending June, Chief Financial Officer Amar Chintopanth told Reuters, with the full benefit felt in the second quarter.
"We did not have any products for mutual funds," he said. "This allows us to use Datacons' products for investment portfolio of insurance companies."
3i has products for banking, financial services and insurance sectors, while Datacons offers software products for mutual funds and foreign institutional investors.
"They have a large presence in the mutual fund market in India with around 25 to 30 clients," Chintopanth said.
The company is also looking at leveraging Datacons modest client base in the Asia-Pacific region. Datacons also has about 10 "small" clients in the Far East, Middle East and Africa, he said.
Datacons has about 250 employees and an annual revenue of $5 million. Shares of 3i Infotech were up 2.9 percent at Rs 180.95 in a firm Mumbai market.