3i Infotech signs agreement to acquire Regulus Group, USA, and its subsidiaries
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.
About 3i Infotech Limited
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