L&T Infotech eyes Polaris FT's services biz in $400 mn deal

Financial technology firm Polaris FT is gearing up to sell its services business unit and L&T Infotech is believed to be leading the race to acquire this business estimated to be valued at about $400 million.

Chennai-headquartered Polaris Financial Technologies provides solutions for core banking, corporate banking, wealth & asset management and insurance, while, L&T Infotech, part of the engineering and construction major Larsen & Toubro (L&T), provides IT services and solutions.

Others who had been in talks with Polaris FT for this deal include Tech Mahindra and NEC, but the discussions are now moving towards possible closure with L&T Infotech emerging as the frontrunner, investment banking sources involved in the deal said.

While spokespersons at both L&T Infotech and Polaris FT declined to comment on the deal, terming it as speculative in nature, sources said that the deal could value Polaris FT's services business at about $400 million (about Rs 2,400 crore).

When contacted, a Polaris FT spokesperson said: "We decline to comment as we do not respond to media speculation."

L&T Infotech also did not comment on the development and its spokesperson said: "We do not comment on market speculation."

According to sources, IT services major Tech Mahindra and IT and network technologies firm NEC India were also in the fray to acquire Polaris FT's services business. Tech Mahindra and NEC India spokespersons also declined to comment.

Polaris Financial Technology had reported a net profit of Rs 43 crore in March-June quarter. Revenues stood at Rs 584 crore during the same period. Its cash and cash equivalents stood at Rs 571 crore at the end of the March-June quarter.