41% to Be Purchased From Citigroup and 20% From Public Shareholders
REDWOOD SHORES, Calif., Aug. 2 /PRNewswire-FirstCall/ -- Oracle
(Nasdaq: ORCL) today announced that it will buy a majority interest in India's
largest applications software company, i-flex solutions (Bombay Stock
Exchange: IFLX.BO and National Stock Exchange of India: IFLX.NS). Software
products from i-flex support corporate banking, consumer banking, investment
banking, Internet banking, asset management, and investor services. i-flex has
provided software and services to 575 banks in 115 countries.
(Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20020718/ORCLLOGO )
"i-flex is the hottest software company in the banking industry, signing
more new customers than any other banking software company in each of the last
three years," said Oracle CEO, Larry Ellison. "Banking is a strategic industry
for Oracle with 9 out of the top 10 banks already running Oracle ERP
applications. Oracle's overall application strategy is to go beyond ERP and
offer customers richer industry-specific functionality. i-flex gets us there
in banking."
The current i-flex management team will continue to run the company and
will align product development, sales, marketing, and services activities with
Oracle. The i-flex service organization will continue to provide deep domain
expertise to major banks around the world. Oracle President Charles Phillips
will join the i-flex board, and i-flex stock will continue to trade on the
Bombay Stock Exchange and the National Stock Exchange of India.
"We have enjoyed a long, highly successful partnership with Oracle, and
this transaction will be a logical evolution of our relationship," said Rajesh
Hukku, Chairman and Managing Director of i-flex solutions. "Aligning with
Oracle, we can jointly offer an unmatched value proposition to our global
customers with truly integrated solutions across the front, middle, and back
office."
"This investment brings together our complementary technology to offer
customers the most comprehensive banking solution for next generation
applications, technology and services," said Phillips. "The inevitable
transition from legacy systems to modern applications has created a multi-
billion dollar opportunity, and because no single supplier has been able to
meet customer needs, the banking software market is highly fragmented.
Customers have been looking for a Tier 1 software partner to help modernize
their systems and lower their maintenance costs."
Under terms of the agreement, Oracle will acquire Citigroup Venture
Capital International's 41 percent ownership stake in i-flex solutions. As
required by Indian law, Oracle will make an open offer beginning on or about
August 3, 2005 to purchase an additional 20 percent of the shares outstanding
from the remaining shareholders at a price of Rs882.62 per share, with total
cash consideration of approximately USD $316 million if the entire 20 percent
is tendered into the offer. Subject to regulatory approvals, the transaction
is expected to close by the end of 2005.
IBM has been a key global partner for i-flex and Oracle. "The i-flex
products will continue to run on IBM software and hardware, and our
relationship with i-flex aligns us more closely with IBM solutions for our
joint banking customers," said Phillips. "In addition, Citigroup remains a
committed and loyal customer of i-flex, having recently entered into a 5-year
product and services agreement."
i-flex applications have been optimized for Oracle's technology platform
since 1997, with over 90 percent of i-flex customers currently running on
Oracle technology. The i-flex portfolio of software products includes
FLEXCUBE(R), the world's #1 selling core banking solution; Reveleus(TM), an
advanced business analytic application; and Daybreak(TM), an enterprise
consumer-lending suite. In addition, the i-flex PRIMESOURCING offering
provides a comprehensive range of software, consulting, development and
support services, differentiated by deep domain expertise. i-flex is
headquartered in Mumbai, India and employs over 5,500 people worldwide.
About Oracle
Oracle is the world's largest enterprise software company. For more
information about Oracle, visit Oracle's Web site at http://www.oracle.com .
About i-flex solutions
i-flex solutions (Reuters: IFLX.BO and IFLX.NS) is a world leader in
providing IT solutions to the financial services industry. For more
information about i-flex, visit the i-flex Web site at
http://www.iflexsolutions.com .
NOTE: All company and product names are trademarks of the respective
companies with which they are associated.
This press release is for information purposes and not an offer to buy or
the solicitation of an offer to sell any shares. The details of the open
offer to the public shareholders of i-flex will be made pursuant to a Letter
of Offer addressed to each of the shareholders of i-flex. Shareholders of i-
flex should read these materials carefully because they contain important
information, including the terms and conditions of the offer.
EDITORS NOTE:
A conference call and live webcast have been scheduled for press and
financial analysts today at 8:00 a.m. EDT. The dial-in number is:
913-981-5523 or toll-free at 800-289-0529. Local dial-in lines are available
for Indian callers by dialing +91-22-27812277 or +91-22-55917977 in Mumbai,
+91-11-51567745 or +91-11-26516763 in Delhi, and +91-80-170305417 or
+91-80-22377232 in Bangalore.
The webcast link is available at http://www.oracle.com/investor or
http://phx.corporate-ir.net/playerlink.zhtml?c=67786&s=real&e=1112641 .
A replay of the call will be available beginning at Noon EDT by dialing
719-457-0820 or toll-free 888-203-1112, and entering in confirmation code:
8437482.
SOURCE Oracle Corporation
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Related links:
http://www.iflexsolutions.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20020718/ORCLLOGO
AP Archive: http://photoarchive.ap.org PRN Photo Desk
photodesk@prnewswire.com
CONTACT:
Bob Wynne of Oracle, +1-650-506-5834, or
bob.wynne@oracle.com; or Peter Yorke, +91-80-2208-3000, or
5759-3000, ext. 7250, or peter.yorke@iflexsolutions.com, or Eapen
Thomas, +91-22-2823-5190, ext. 5132, or
eapen.thomas@iflexsolutions.com, both of i-flex solutions
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