KPIT Cummins sells financial services software business to Infrasoft

Mid-sized IT firm KPIT Cummins has exited financial services software segment by selling its business to Infrasoft Technologies, a niche software firm focussed on software products and services for banks. Infrasoft is majority owned by private equity firm Baring.

The exit will allow KPIT to focus on its core strengths of serving the automotive, manufacturing, energy and utilities industries . The value of the transaction was not disclosed. The financial services business accounts for about 3-4 % of the company’s revenues. “At our size, a company has to be a very focused player. We were not making any pro-active investments in the segment for the last many years,” said Kishor Patil, CEO and MD, KPIT, on the decision to exit.

The company intends to focus on its core customer segments of automotive, transport, manufacturing and energy & utilities which account for 80% of its revenues. It gets about 20% of its revenues from other areas, but has no plans to exit them as of now, he said. Infrasoft Technologies had raised about Rs 80 crore from Baring Private Equity in 2007 with the objective of making acquisitions. But, following the slump in 2008, it did not make any acquisitions . This is the first acquisition after Baring’s investment.