Acquisition of I-flex by Acquisition of I-flex by OracleOracle

Priyanka Sardey – 52Priyanka Sardey – 52Mandar Deshmukh - 13 Mandar Deshmukh - 13

• What Does Merger Mean?

• What Does Acquisition Mean?

BasicsBasics

• Horizontal Merger

• Conglomeration

• Vertical Merger

• Product-Extension Merger

• Market-Extension Merger.

Various Types of MergerVarious Types of Merger

• Year of Establishment: 1989.

• Presence: more than 130 countries

• Serving over :790 customers worldwide.

• Branches: USA, Netherlands, Greece, Singapore and India

• What does I-flex Solutions Ltd. Offers?

• Esteemed customers:Banco de Chile Citibank IMF (International Monetary Fund) UBS Shinsei Bank.

• Successfull collaborations with: IBM, HP, Intel, Microsoft Sun Microsystems.

Contd..

Headquarters San Francisco Bay Area

IndustryInformation Technology and Services

Type Public Company

Status Operating

Company Size 90,000 employees

2007 Revenue $17,996 mil (25%)

Founded 1977

Website http://www.oracle.com

About OracleAbout Oracle

• Open and integrated business software and hardware systems

• More than 370,000 customers

• Presence in more than 145 countries around the globe.

About Oracle

• Oracle FLEXCUBE Solutions• Oracle Reveleus Solutions• Oracle Mantas Solutions• Oracle Business Intelligence Applications• Oracle Complex Event Processing• Oracle CRM on Demand for Wealth Management• Oracle Financial Services Analytical Applications• Oracle Lease & Finance Management• Oracle Financial Messaging Solutions

Facilities provided by Oracle Financial Services Facilities provided by Oracle Financial Services Ltd:-Ltd:-

• Oracle — owned by Larry Ellison.

• Has taken over the company I-Flex Solutions for Rs 3,954 crore ($909 million).

• 42 % stake of CITIGROUP in Iflex for about $ 565 m.

• The deal will be worth $ 909 m if Oracle is able to acquire 20 % from the market

• Open offer to the share holders of I Flex at about Rs. 882.62.

ORACLE Acquires I-Flex SolutionsORACLE Acquires I-Flex Solutions

• Global footprint for I Flex presence in 114 countries

• Wide Customer base

• Consistently ranked number 1 by International Banking Systems

• A very strong Product base

• Help Oracle make a stronger footprint in the Banking Industry

Some of the reasons sighted by Oracle on Some of the reasons sighted by Oracle on acquisition of I Flex are:acquisition of I Flex are:

• I-Flex will continue with the existing partners like IBM and other technology vendors.

• Citigroup - the major customers of I Flex - continue to be its customer for the next 5 years.

• The current I-flex management team

• Align product development, sales, marketing and services activities with Oracle.

• The i-flex's service organisation would continue to provide deep domain expertise to major banks around the world.

After acquisitionAfter acquisition

Before Acquisition Before Acquisition (In I-flex) (In I-flex)

After Acquisition After Acquisition (in (in Oracle)Oracle)

ChairmanChairman Mr. William T Comfort

Mr. N R Kothandaraman-(N R K Raman)

Rajesh Hukku

Managing Managing DirectorDirector

• Tap the US markets since Oracle runs on close to 5000 banks worldwide and 9 out of 10 top tier banks run Oracle in US.

• 90 % of the implementations for I Flex involve Oracle as the back end

• No integration issues

Advantages for I-Flex after AcquisitionAdvantages for I-Flex after Acquisition

Key Performance IndicatorsKey Performance Indicators

I-flex – Operating IncomeI-flex – Operating Income

Oracle – operating incomeOracle – operating income

I-flex - EPSI-flex - EPS

Oracle - EPSOracle - EPS

OracleOracle

Oracle – Net IncomeOracle – Net Income

I-flex – Net IncomeI-flex – Net Income

Oracle Oracle

OracleOracle

• Market capitalization – $70.0 bn• Total revenue – $11.8 bn• Total employees – 50,000• Total customers –

• Database: 250,000• Applications: 26,000

• 8,500 banking customers, including 1,500 apps customers• 17 of the world’s top 20 banks• 23 of the top 25 North

American banks

•Market capitalization – $1.5 bn• Total revenue – $261 mm• Total employees – 5,500• Total customers – 575 • FLEXCUBE: 225• Oracle overlap – • Database installations: 92% • App server installations: 78%

• Technological Synergy

• Production Synergy

• Marketing Synergy

Different Synergies of this AcquisitionDifferent Synergies of this Acquisition

TTHHAANNK K

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