3i Infotech Limited to sell global software products business for Rs. 1000 crores to Apax Partners group

On December 28,2020, the board of directors of 3i Infotech Limited considered and approved the slump sale of the global software products business of the Company (including its worldwide subsidiaries) on a going concern basis to Azentio Software Private Limited (and its affiliates), subject to receipt of requisite approvals and executed a business transfer agreement between the Company and the Buyer on December 28, 2020 ("BTA").

Company's software product business consisting of the business, intellectual property and employees inter alia in India, USA, UK, Kenya, UAE, Malaysia, Singapore, Thailand and Saudi Arabia. The software product business of the Company in India ("Product Division") is being transferred under the BTA. The software products business in the other jurisdictions will be transferred pursuant to offshore business transfer agreements.

The turnover/revenue of the Product Division is INR 442.98 crores for year ending March 31, 2020, which constitutes 38.81% of the Company's consolidated turnover/revenue for the year ending March 31, 2020. The Net worth of Product Division was INR 323.03 crores as on 31 March 2020.

The aggregate consideration for the Software Business (in and outside India) and intellectual property of up to INR 1,000 crores, subject to customary working capital and other adjustments in accordance with the provisions of the BTA and other transaction related documents.

The buyer is Azentio Software Private Limited alongwith its parent and fellow subsidiaries (collectively "Azentio Group") worldwide. The registered office of Azentio India is at 1st Floor, 25 Sej Plaza, Marve Road, Malad (West) Near Nutan Vidya Mandir S.chool, Mumbai - 400064 Maharashtra, India. Azentio Group is wholly owned by private equity funds advised by Apax Partners. Apax Partners is an independent global partnership focused solely on long-term investment in growth companies across four global sectors: Tech & Telco, Services, Healthcare, and Consumer.

The company will proceeds of the sales to facilitate repayment of all existing debt exposure of the company, to scale up other existing business segments of the Company, including providing IT services to customers across sectors and geographies and to unlock value by sale of an undertaking of the Company and strengthening the balance sheet of the Company.

Shares of 3I INFOTECH LTD. was last trading in BSE at Rs.5.63 as compared to the previous close of Rs. 5.48. The total number of shares traded during the day was 41631324 in over 9028 trades.

The stock hit an intraday high of Rs. 5.75 and intraday low of 5.49. The net turnover during the day was Rs. 236975620.

Source : Equity Bulls

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