3i Infotech hit an upper circuit of 5% at Rs 5.91 after the IT firm said its board approved the slump sale of global software products business on a going concern basis to Azentio Software.
3i Infotech has decided to sell its global software products business through a slump sale to Mumbai-based Azentio Software for Rs 1,000 crore. The company's software product business has intellectual property and employees in India, the U.S., the U.K., Kenya, UAE, Malaysia, Singapore, Thailand and Saudi Arabia.The IT company's product division posted revenue of Rs 442.98 crore for the year ending 31 March accounting for 38.8% of the company's consolidated turnover. The sale of the product division is expected to be completed by 31 March 2021, subject to receipt of requisite approvals and fulfilment of customary closing conditions.
3i Infotech lastly added that the transaction will facilitate repayment of all existing debt exposure of the company; scale up other existing business segments of the company; and unlock value by sale of an undertaking along with strengthening the balance sheet.
3i Infotech is a global information technology company providing IP based software solutions and a wide range of IT services across various sectors including banking, insurance, capital markets, asset & wealth management manufacturing, retail, distribution, telecom and healthcare.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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