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3i Infotech to buy UK co for Rs 230 cr

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Consolidated net up 69 pc

Mumbai , Oct. 20

3i Infotech Ltd said it will be acquiring Rhyme Systems, a UK-based 15-million revenue asset management software company.

The cost of the acquisition will be 28 million (around Rs 230 crore), but since the acquired company's debts will be taken on by 3i Infotech, the cost would work out to a little over Rs 150 crore, said a source close to the deal.

The acquisition of Rhyme Systems would complement 3i Infotech's foray into UK's banking, financial services & insurance (BFSI) market, said a statement from 3i Infotech.

3i Infotech has reported a 68.8 per cent rise in its consolidated net profit (after minority interest) for the second-quarter ended September 2006; net profit amounted to Rs 22.52 crore against Rs 13.34 crore in the corresponding quarter of the previous year.

Total income rose by 51 per cent to Rs 148.89 crore (Rs 98.34 crore).

Gross profit from the products business stood at Rs 38.44 crore, rising 72 per cent; and from services at Rs 32.62 crore, rising 57 per cent.

"This has been an exciting quarter for 3i Infotech both in terms of growth in revenue and expansion of our solution offerings with acquisition of G4 technologies and Rhyme Systems," said Mr V. Srinivasan, Managing Director & CEO, 3i Infotech Ltd.

Standalone quarter

The standalone second-quarter net profit has been recorded at Rs 13.77 crore, 47.59 per cent higher over Rs 9.33 crore in the previous corresponding quarter.

Standalone total income has increased by 14.32 per cent to Rs 84.17 crore (Rs 73.63 crore).

The company has revised its guidance for the year and expects to end FY2007 with revenues of between Rs 620 crore and Rs 640 crore and EPS between Rs 16 and Rs 17.

The company's shares gained 1.13 per cent on the BSE to close at Rs 187.3.

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