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REDWOOD SHORES, Calif.,
02-AUG-2005 04:00 AM
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.
"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 excellent 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 (NASDAQ: ORCL) 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.
# # #
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 8:00am 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 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.
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