Infosys may get $8-10m from Yantra sale

Infosys Technologies may get $8-10 million from the sale of Yantra Corporation, an official familiar with the deal said on Tuesday.

Infosys holds a 16 per cent stake in Yantra Corp.

Late Monday, Sterling Commerce, a multi-enterprise collaboration company and a wholly owned subsidiary of SBC Communications Inc, said it has agreed to purchase Yantra Corporation, a provider of distributed order management and supply chain fulfilment solutions, for approximately $170 million in cash.

The official said although Infosys has a 16 per cent stake, "since Yantra has issued a series of preference shares, which carry higher liquidation rights, Infosys may get only $8-10 million."

The transaction that is expected to be complete by early first quarter of 2005 is subject to regulatory review.

Yantra was founded in 1995 as a privately owned spin-off of Infosys Technologies and is headquartered in Tewksbury, a suburb of Boston in the US. The company employs more than 250 people.

Sterling Commerce has said it expects to retain all Yantra employees and operate the company as a new business division, headed by Devdutt Yellurkar, Yantra's current chief executive officer.

Yantra's application suite will be incorporated into Sterling Commerce's recently announced multi-enterprise services architecture.

Yantra focuses on retail, wholesale distribution, logistics, and manufacturing vertical industries, and has engagements with companies such as Argos, Best Buy, Circuit City, DHL, Dixons, FedEx, Motorola, SYSCO Corporation, Target, Texas Instruments, and Thomson.

Since its inception, Yantra has raised more than $76 million in private equity and apart from Infosys, other investors include JP Morgan, Morgan Stanley, Rho Capital Partners, Draper International, Charles River Ventures, and Broadvision among others.