i-flex may buy Capco’s unit for $150m
Banking software major i-flex Software solutions is said to be in talks to acquire the Asia-Pacific operations of Capco in a transaction worth $100-$150 million.
i-flex is believed to be negotiating with Romesh Wadhwani’s Symphony Technology Group (STG) group, which in September this year bought out all outstanding shares of Capco.
STG’s decision to sell Capco’s Asia-Pacific operations seems to stem from its belief that the US and Europe businesses of Capco have more potential. But i-flex and its majority shareholder Oracle are more keen on the Asia Pacific business.
The talks have been going on for some time now, but no binding offer has been made as the i-flex management is waiting for Oracle’s open offer to close on December 23, 2006. A clearer picture on the acquisition plan is likely to come out only after that, people close to the transaction said. Oracle may also fund this acquisition like it did for Mantas’ acquisition by i-flex earlier this year.
i-flex officials refused to comment on the issue. Even Capco officials did not respond to an email questionnaire.
In September this year, Romesh Wadhwani of STG decided to buy out all outstanding shares of the company. STG bought out Capco shares for its customers in the US and Europe. The company would use its Indian development centers to scale up operations for the combined entity.
STG is a strategic holding company with $1.2 billion in revenues and more than 7,000 employees worldwide. It focuses investments in growing businesses in the software and services markets. STG’s portfolio companies leverage the group’s financial and operational resources to achieve revenue growth through innovation.
Capco provides consulting and software services to banking and finance industry. Its Asia-Pacific customer list includes several banks. i-flex seems to be interested in these banks as it sells core-banking software products.
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