3i Infotech signs agreement to
acquire Regulus Group, USA, and its subsidiaries
Highlights: Move aimed to:
1) Penetrate Fortune 100
customer base in the U.S.
2) Create a global player in payment
processing solutions by integrating Regulus, J&B Software and 3i
Infotech’s products, software services and BPO expertise
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Mumbai – April
29, 2008 – 3i Infotech, a global information technology
company, today announced it has signed an agreement to acquire Regulus Group
LLC (Regulus). Regulus is the largest independent remittance provider and
one of the leading providers of document (bills) processing services in the
U.S. – addressing the full document lifecycle from print and electronic bill
presentment to remittance. Under the terms of agreement, 3i Infotech has
proposed to acquire 100% of Regulus, including the company’s products,
trademarks and product brands.
Regulus was founded in 1995 as a
provider of remittance processing solutions. Today Regulus is the largest
independent bill presentment and remittance processing company, handling
more than 2.1 billion paper and electronic transactions annually. The
company is headquartered in Napa, California and operates a nationwide
network of ten processing centers in California, Georgia, Illinois, New
Jersey, North Carolina, Iowa and Texas. Regulus has approximately 1,300
employees. The company processes one in every fifty check payments in the
U.S. and produces an estimated one of every 25 consumer statements generated
in the U.S.
Regulus’ blue-chip client base includes one of
every three Fortune 50 companies. Regulus has clients in the insurance,
finance, telecom, utilities and healthcare sector. The company serves
approximately 150 clients through its direct sales force and approximately
85 additional clients generated through reseller partnerships. The
acquisition will provide 3i Infotech significant cross-selling
opportunities.
Regulus reported revenue of approximately
USD 148 million for the 12 months ended December 2007. The cost of the
acquisition to 3i Infotech is approximately USD 80 million with additional
consideration of up to USD 20 million based on an earn-out linked to certain
performance parameters.
Upon closing, Mr. Richard Long,
the current CEO will step down and Ms. Kathleen Hamburger, current
President and Chief Operating Officer, will assume the role of CEO. Ms.
Hamburger was recently awarded OutputLinks Women of Distinction Honor.
OutputLinks is the primary global research and information resource of the
high volume transaction output (HVTO) industry and recognizes Contributions
to the HVTO Industry.
Commenting on the acquisition Mr. V.
Srinivasan, Managing Director and CEO, 3i Infotech said “The acquisition of
Regulus Group is a strategic one and will enable 3i Infotech to strengthen
its positioning in the payment processing industry.”
Ms.
Kathleen Hamburger, President and COO, Regulus Group said “We believe that
through this partnership we will be able to expand Regulus’ solutions
globally and benefit from 3i Infotech’s technology and services
experience.”
Regulus was advised by the investment banking
firm Lane, Berry & Co., Boston, USA.
3i Infotech is one
of the top four Indian software products companies.* The company provides
software products and IT services (managed IT services, application software
development & maintenance, payment services, business intelligence, IT
consulting, BPO, document imaging & digitization and data warehousing)
for the insurance, banking, capital markets, mutual funds, manufacturing,
retail & distribution, and government . The company services customers
in over 50 countries across five continents. 3i Infotech is SEI CMMI Level 5
compliant for its software services and ISO 9001:2000 certified for its IT
infrastructure and BPO services.
About
Regulus
Founded in 1995, Regulus is one of the largest
independent payment processors in the U.S., servicing nearly two billion
paper and electronic transactions every year for Fortune 500 customers.
Regulus delivers an end-to-end solution, starting from release of the
customer’s billing file for invoicing, through the posting of the associated
paper or electronic payment, to support of customer care and collections.
By leveraging data from the total payment cycle, Regulus is able to offer
value-added services that provide measurable process efficiencies. The
company is headquartered in Napa, California, and has offices nationwide.
For more information, visit the company’s web site at www.regulusgroup.com
For more
information, please contact:
M.B. Battliwala
Senior
General Manager
3i Infotech Limited
Akruti Centre Point, 6th
Floor
M.I.D.C Central Road
Next to Marol Telephone Exchange
Andheri (East), Mumbai - 400 093
INDIA.
Tel: + 91.22-39145560
Fax: +91.22-39145520
Email: corporate@3i-infotech.com
Except for the historical
information contained herein, statements in this release, which contain
words or phrases such as "will", "would", "expect", "believe", and similar
expressions or variations of such expressions may constitute
"forward-looking statements". These forward-looking statements involve a
number of risks, uncertainties and other factors that could cause actual
results to differ materially from those suggested by the forward-looking
statements. These risks and uncertainties include, but are not limited to,
the performance of the Indian economy and of the economies of our principal
international markets, the performance of the industry sectors in which our
clients are based, the performance of the information technology industry
sector world-wide, competition, our ability to obtain statutory and
regulatory approvals and to successfully implement our strategy, future
levels of our growth and expansion in business, technological
implementation, changes, advancements, and redundancies, the actual demand
for software products and services, or the future potential or feasibility
thereof, changes in revenue, income or cash flows, our market preferences
and our exposure to market risks, as well as other risks. 3i Infotech
undertakes no obligation to update forward-looking statements to reflect
events or circumstances after the date thereof.