3i Infotech rose 1.73%, to Rs 167.90 on acquisition of G4 Software Technologies.


As many as 52,737 shares were traded on the BSE.

The counter has been range-bound from late June till earlier August. The stock fluctuated between Rs 139-150 from 30 June till 8 August. From Rs 146.10 on 8 August, it rose to Rs 170.40 by 25 August, only to slip to Rs 165 by 4 September 2006.

At the current market price of Rs 167.90, 3i Infotech trades at 10.40 times its Q1 June 2006 annualized EPS of Rs 16.10.

3i Infotech has acquired G4 Software Technologies (India). G4 is a niche company with Rs 8.4 crore annual revenue and with a around 50 employees specialising in payment services, back office exception processing solutions and business process integration services. The consulting and payment services of G4 compliments with the company's banking offerings and offers significant scope for IT consulting. Moreover, one of G4's services, BEEP, can be used with the company's mutual fund products for reconciliation and also for other businesses with high volumes like credit cards, PDC factory and other BPO areas, which the company plans to target in the near future.

In July, 3i Infotech acquired a majority stake in Delta Services (India), a Mumbai-based BPO.

In June, Allied Insurance, Maldives, has chosen the 3i Infotech's insurance offering, Premia, to automate operations, increase service levels and enhance market share. Similarly, the company's lending solution 'Kastle' has been chosen by Credit Guarantee Corporation, Malaysia, a leading development financial institution in that country for its business operations.

In April, 3i Infotech acquired Datacons, a Bangalore-based software products company, which offers niche products for the mutual funds segment for Rs 40 crore.

Earlier in April, the company successfully completed the roll out of Integrated Insurance Management Solution at 192 offices of Oriental Insurance Company, and the re-branding of its banking solutions under the 'Kastle TM' brand.

Over the years, 3i Infotech (earlier ICICI Infotech) has transformed from the back office of ICICI Bank to a software products-cum-services company focused on the banking, financial services and insurance field. It is the largest selling ERP after SAP and Oracle.

3i Infotech consolidated its operations with three recent acquisitions and is planning a special thrust on consultancy and managed services across verticals it currently operates in, with a focus on eGovernment projects. The company has shown a remarkable acquisitions-led growth. Till date, 3i Infotech has acquired about 14 companies, including SDG Software, a player in anti-money laundering space, Data Cons, a BPO player and Delta Technologies in the last year itself.

While the company has managed to successfully integrate them, the effort is directed to take a wider range of products to the market, including offer of business process outsourcing services, particularly to the domestic market.

3i Infotech registered a consolidated net profit growth of 107% to Rs 21.35 crore (Rs 10.30 crore) for Q1 June 2006. Net sales rose 45% to Rs 128.46 crore (Rs 88.48 crore).