French information services major Atos Origin has acquired transaction processing firm Venture Infotek Ltd in a 100% cash transaction. The deal is likely to give an exit to AIM-listed Kubera Cross Border Fund, which invested $19.8 million for a 54% stake in Venture Infotek.
Venture Infotek provides integrated card payment solutions to organisations across several industry verticals that include banking, financial services, petroleum, retail, and telecommunications.
Kubera said in a statement that it has realised a a multiple of 2.7x, which would transalte to a return of $53.46 million on its investment, and a valuation of around $99 million.
The deal would give €5.1-billion Atos Origin a direct presence in India. Atos said, in a release, Venture Infotek expects revenue of EUR 30 million ($38 million) for 2011 and has been showing an annual average growth rate of 25% over the last three years. The company had revenues of $19.8 million in FY09 and FY10P at $24.2 million. Venture Infotek has an employee headcount of around 500.
Atos added that Venture Infotek has a 35% market share in India with six out of the top 10 Indian banks as its customers. Venture Infotek will be integrated to Atos Wordline, the specialised entity of Atos Origin in hi-tech transactional services and electronic payments.
Venture Infotek, which had bagged a large order for debit card issuance in India from India's largest lender State Bank of India, said in March that it had issued a record 20 million debit cards for the bank. Some of the recent client additions of the firm include Punjab National Bank, MasterCard and Diners.
Transaction processing companies in India have attracted several PE investments. In December 2009, Chennai's Financial Software & Systems raised $60 million from private equity firms Jacob Ballas Capital and New Enterprise Associates. Earlier investments include Advent International's deal Computer Age Management Systems and TechProcess Solutions, which has raised funding from players like ICICI Venture, Battery Ventures and Greylock.