IBM may pick up 0.13% stake in i-flex for $1m

Global hardware major IBM might pick up 0.13 per cent stake in i-flex solutions for $1 million. i-flex intends to issue 98,000 warrants or options to IBM, which will be converted to shares within a period of 18 months from the issue date. i-flex has 74 million shares.

"IBM and i-flex entered into a partnership in November 2003 for porting Flexcube on to large IBM mainframes so we can jointly target big retail bankers. This acquisition simply reinforces IBM's commitment towards our global partnership," said a i-flex spokesperson. The company will seek shareholders approval for the issuing of warrants at the ensuing annual general meeting on August 19.

Sources in i-flex said that IBM was not open to picking up a larger stake in i-flex even at a later date. "This is merely a token gesture and not a strategic acquisition," said a company official.

According the IBM-i-flex global alliance"" IBM and i-flex will jointly market and sell the Flexcube and Reveleus product suites on IBM's middleware and IBM eServer pSeries.

IBM will promote Flexcube as a leading core banking solution in the Unix/NT environment, and will provide consulting, implementation and integration services within the IBM business consulting services organisation. This is a two-three year program.