3i Infotech to acquire US-based Regulus Group

Global information technology company 3i Infotech today said it will acquire US-based Regulus Group LLC (Regulus), an independent remittance and document processing services provider, for up to $100 million dollars.

The cost of the acquisition is approximately $80 million with additional consideration of up to $20 million based on an earn-out linked to certain performance parameters, 3i Infotech said in a filing to the Bombay Stock Exchange (BSE).

"The acquisition of Regutits Group is a strategic one and will enable 3i Infotech to strengthen its positioning in the payment processing industry," 3i Infotech Managing Director and CEO V Srinivasan said.

The company has signed an agreement with Regulus Group under which it would acquire 100 per cent stake the company, including its products, trademarks and brands.

California-based Regulus handles over 2.1 billion paper and electronic transactions annually. It operates through 10 processing centers in California, Georgia, Illinois, New Jersey, North Carolina, Iowa and Texas.

Regulus has around 1,300 employees and serves around 150 clients through its direct sales force and about 85 additional clients generated through reseller partnerships.

Pursuant to the acquisition, current Regulus CEO Richard Long would step down and Kathleen Hamburger, current President and Chief Operating Officer of the firm, would assume the role of CEO.

Shares of 3i Infotech were trading at Rs 123, up 2.71 per cent on BSE in morning trade.