3i Infotech acquires US-based Regulus for $100 mn

In April, the company had entered into an agreement with the US firm to acquire 100 per cent stake in the company, including its products, trademarks and brands.     

"3i Infotech had, earlier, signed an agreement to acquire 100 per cent shares of Regulus Group and has now completed the acquisition," the domestic IT solutions provider said in a filing to the Bombay Stock Exchange.      

The estimated cost of acquisition was $80 million, with an additional consideration of up to $20 million based on an earn-out linked to certain performance parameters, the company had said.     

California-based Regulus handles over 2.1 billion paper and electronic transactions annually. It operates through 10 processing centres 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. Regulus has clients in the insurance, finance, telecom, utilities and healthcare sector.      

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, 3i Infotech had earlier said.     

Shares of 3i Infotech closed at Rs 116.25, up 3.98 per cent on the BSE.