Database giant Oracle has announced a £180m deal to buy a majority interest in India's largest applications software company, i-flex solutions.
The Indian firm produces software to support corporate and consumer banking, investment banking, Internet banking, asset management and investor services and has provided software and services to 575 banks in 115 countries.
Its applications have been optimised for Oracle's technology platform since 1997, with over 90% of i-flex customers currently running on Oracle technology.
Oracle will acquire 41% of i-flex’s shares from venture capital firm Citigroup and will make an offer to buy an additional 20% from the remaining shareholders – a requirement under Indian law. The total cost of the deal is expected to be around $316m if the full 20% is included in the offer.
Larry Ellison, Oracle’s chief executive, said, “i-flex is the hottest software company in the banking industry, signing more new customers than any other banking software company in each of the last three years.
"Banking is a strategic industry for Oracle with nine out of the top ten banks already running Oracle ERP applications. Oracle's overall application strategy is to go beyond ERP and offer customers richer industry-specific functionality. i-flex gets us there in banking.”
The current i-flex management team will continue to run the company and will align its strategy and activities with Oracle.