Oracle plans to hold $650 million in India's largest bank software provider

July 27th news, Oracle is negotiating with Citigroup's private equity sector, the latter intends to acquire the controlling stake in India I-flex Solutions, the transaction value of more than $650 million. I-flex Solutions is the world's best selling bank software maker.

The acquisition will be India's biggest deal this year and mark a major expansion in Oracle's software market, the financial times reported. The transaction will also highlight the growing importance of India's rapidly growing information technology industry to international business groups.

Informed sources said that in the acquisition of 43.1% stake in the hands of Citigroup I-flex competition, the U.S. software group in a leading position. The move marks the end of the 20 year partnership between the US financial services group and India's I-flex. Citigroup, for example, has been considering selling I-flex shares for months, and has become the only company to try to buy it after receiving the intentions of several companies, including IBM, they said.

"Citigroup has been selling its shares for some time and Oracle seems to be the biggest buyer," said one person. But he warned that the agreement has not been signed, the negotiations are likely to rupture.

It is reported that Citigroup is also considering the sale of its 44% stake in Polaris software (Polaris Software), but the prospects for this part of the shares is still uncertain. Polaris software is an information technology company, headquartered in India, the southern city of Chennai (Chennai).

I-flex, which is based on a department set up by Citigroup in 1985, employs 4700 people and is involved in the design and installation of risk management, treasury and other banking software.

The company has been providing services to Citigroup's banking operations for years. 2002 spin off in India, Mumbai. Since listing, the company's share price has risen more than 2 times last week hit a record high of RS 920.