3i Infotech sells software products business to Azentio Software

3i Infotech has now revealed that it has signed a deal for the sale of its software products business to Azentio Software, a wholly-owned subsidiary of Apax Partners.

3i Infotech is a global IT company that offers technology solutions to more than 1500 customers in 50+ countries. The company offers software products, BPO, and IT services for a wide range of industry which includes Mutual Funds, Banking, Insurance, Government, Retail, Wealth Management, etc.

Padmanabhan Iyer, Managing Director & Global CEO, 3i Infotech, said, "Today’s announcement is transformative and value accretive for all stakeholders of 3i Infotech. I foresee a very exciting future for both the IT services and the software products business. Both businesses will have the resources to capitalise on market opportunities and build long term value for employees, customers and shareholders. I want to thank the entire 3i Infotech team for their commitment and contribution towards the successful journey of the company and I am sure that the teams will be infused with renewed vigour going forward."

Shashank Singh, Partner and Head of the India office at Apax Partners, said, "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. The newly formed company, Azentio, has a strong portfolio of feature-rich products that run the core operations for customers. We are excited to unlock Azentio’s potential and help transform the business into a true regional leader in the software space."

The deal has been finalized for a total of INR 1000 crore with subject to regulatory and shareholder approvals and is expected to close by the first quarter of 2021.

Following the deal, the entire 3i Infotech product lineup in the software segment includes the core assets for customers in the Banking, Financial Services, and Insurance domain will be taken over by Azentio.

The IT services unit will continue to work as earlier and will pursue strategic growth initiatives.

On the buyer side, Apax plans to invest in the Azentio Research and Development, marketing, and sales efforts. It also aims to improve the current products and launch new ones, with a focus on enhancing the service level for all customers.

Apax Partners will now going to use the new firm for the merger and acquisitions in the BFSI software segment.