3i Infotech eyes more acquisitions
By agencies   |   Monday, 05 December 2005, 20:30 IST
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MUMBAI: 3i Infotech (ICICI Infotech) still has a strong appetite for acquisitions, even after the three buys it has done after it publicly listed this year. Announcing this the company’s Chief Financial Officer, Amar Chintopanth said that such acquisitions could be financed through swaps also, and not necessarily through cash only. 3i Infotech also had internal accruals. And, to aid possible acquisitions, it recently sought an enabling resolution to issue securities or instruments of up to $50 million, he said. The acquisitions would likely be in the banking. financial services, insurance (BFSI) space or in certain services. They could be chosen for the product suite they offer or for the opportunity they might offer in new geographies. “We feel it is better to pick up a product from the market,” he said. Typically a target company would be of a size one-tenth in terms of revenues with respect to 3i Infotech. “That is where integration becomes easier and when those companies can look forward. In the companies that we have acquired, we have 75 to 80 percent of the staff with us,” Chintopanth said. 3i Infotech likes to call itself a ‘solutions’ company eyeing a target mix of 50:50 from services and products. It is nearly there, pointed out Chintopanth, with products accounting for 45 percent of revenues. In the product space insurance is the driver of growth today, he said. Another area of growth for the company could be the BPO space. Chintopanth said, “Not in voice, but in document processing.” This is one of the three things that the company does for ICICI anyway, the others being software maintenance and infrastructure maintenance.

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