To address trading, broker compliance areas; to allot preferential shares to Oracle Corp.
BANGALORE: i-flex solutions will acquire U.S.-based anti-money-laundering and compliance software maker Mantas in an all-cash deal worth $122.6 million (about Rs. 570 crore).
i-flex solutions said on Monday that it has entered into a definitive agreement to acquire Mantas and reckons that the combination will create a market-leading risk and compliance solution suite of offerings.
To fund this acquisition, the i-flex board of directors has decided to make a preferential allotment of i-flex shares to U.S.-based business software maker Oracle Corp, which owns a majority stake in i-flex, subject to shareholders' approval. The pricing of the preferential allotment is sought to be made at Rs. 1,307.50 per share computed as per the relevant Securities and Exchange Board of India (SEBI) guidelines. The Mantas behaviour detection platform is the industry's most comprehensive solution for detecting risk, enhancing customer relationships and addressing regulatory requirements in the anti-money laundering, trading and broker compliance areas.
Mantas customers include top global financial institutions such as ABN Amro, Barclays, Bear Stearns, Citigroup and Merrill Lynch. Risk and compliance requirements are getting increased attention at the boardroom level in financial institutions around the world.
These organisations are seeking broader and more functionally rich offerings to serve their current and emerging risk and compliance needs.
In this market, estimated at over $20 billion by 2008, i-flex solutions has established strong credentials in risk and compliance with its Reveleus solution suite enjoying rapid adoption by global Tier I organisations such as Citigroup, Lloyds TSB, Wachovia and Wells Fargo.
"Through our acquisition of Mantas, we gain access to an industry-leading behaviour detection and compliance solution coupled with deep financial services industry expertise,'' Rajesh Hukku, Chairman and Managing Director, i-flex solutions, said.
"Together we are poised to become a leading player in the risk and compliance marketplace,'' he added. The two organisations see great synergies emerging from this acquisition. Both i-flex solutions and Mantas deliver solutions exclusively to financial institutions and bring an intense focus on domain expertise and customer satisfaction.