Polaris picks up 51 percent stake in Indigo TX

CHENNAI - City-based Polaris Software Lab has acquired 51 percent stake in financial and back office services company Indigo TX Software for an undisclosed sum.

“We found Indigos brokerage software product an apt fit in our mutual fund product suite. Coupled with last years acquisition of Laser Soft Infosystems, Polaris will be in a better position to target the domestic financial services market in a major way, R. Srikanth, executive vice president and chief financial officer, told IANS.

Polaris is a banking, financial services and insurance (BFSI) solutions company.

Indigo, also based in Chennai, offers its brokerage solutions to the securities market on pay per use model or as software as a service (SaaS). The solution runs on a grid architecture which is scalable.

The deal is structured in such a way that Polaris will get 51 percent stake in the Rs.6-crore turnover Indigo by buying out the stakes of investors like UTI VF. It will also get fresh shares allotted by infusing additional funds.

The balance 49 percent stake will be bought based on the performance, Srikanth said.

“I am not cashing out my stakes. I will be there to run the company at least for next four years. The deal is mainly to infuse money to grow the company to the next stage,” Indigo founder and CEO Chandra Balaraman told IANS.

He said Indigo is likely to close a couple of large deals before the end of this fiscal.

Indigos enterprise brokerage solutions GO TX has around 600,000 customers and Polaris will be acquiring them.

According to Srikanth, the acquisition has the potential to increase Polaris after tax profit by Rs.10-30 crore in three years.

Indigo is the third acquisition for Polaris in as many years. In 2008, it had acquired US-based insurance product and component services player SEEC Inc for Rs.37 crore and last year Laser Soft for Rs.52 crore.