3i Info buys 51% stake in PA, E enable

3i Infotech has acquired a controlling stake in two companies that will help it increase its client base and revenue from developed markets.

The global IT solutions provider has acquired 51% stake each in US-based Professional Access (PA) for $12 million and Delhi-based E enable for Rs 5.11 crore.

"PA is an IT solutions provider and specialises in providing e-commerce services for banking, financial services and insurance (BFSI) and retail segment. The company has annual revenue of $24 million," V Srinivasan, CEO and MD of 3i Infotech, said.

3i Infotech has a right to acquire the remaining 49% stake over a two-year period. PA has around 500 employees and has 'commendable presence' in the US, Srinivasan said.

"The acquisition of PA is a strategic one for us and is a valuable addition to our suite of service offerings. The company has a customer clientele that includes Citibank, Goldman Sachs and J P Morgan, and this will help in strengthening our presence in the developed countries," he said.

The company has also acquired 50% stake in E enable, a firm engaged in providing business intelligence (BI). E enable has annual revenue of $1.50 million (Rs 6.50 crore).

Amar Chintopanth, CFO of 3i Infotech, said that the US acquisition was funded from the recent foreign currency convertible bond (FCCB) issue of $70 million while the Indian acquisition was funded from internal accruals.

3i Infotech had earlier acquired Datacons, a mutual fund products company, for $5 million, 51% stake in BPO player Delta Services for $28 million and 100% stake in London-based software products company Rhyme Systems.