Oracle announced that it plans to buy a majority stake in Indian application software company, i-flex solutions. I-flex provides software for banking, asset management, and investor services.
Oracle will be getting a 41% stake from Citigroup Venture Capital International. The company is also making an open offer to purchase another 20% of the shares outstanding from the remaining shareholders for a total of about $316 million.
“Banking is a strategic industry for Oracle with 9 out of the top 10 banks already running Oracle ERP applications,” added Ellison. “Oracle’s overall application strategy is to go beyond ERP and offer customers richer industry-specific functionality. i-flex gets us there in banking.”
I-flex’s current management team will stay aboard, and will align its operations with those of Oracle. Oracle’s president, Charles Phillips will become a member of the i-flex board.
“We have enjoyed a long, highly successful partnership with Oracle, and this transaction will be a logical evolution of our relationship,” said i-flex Chairman and Managing Director Rajesh Hukku.
“Aligning with Oracle, we can jointly offer an excellent value proposition to our global customers with truly integrated solutions across the front, middle, and back office,” continued Hukku.
I-flex stock will continue to trade on the Bombay Stock Exchange and the National Stock Exchange of India. Subject to regulatory approvals, the transaction is expected to close by the end of 2005.
Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
