Oracle to boost stake in Indian software firm

Company plans to pump $125 million into I-flex, an analytical software maker that focuses on the banking industry.

Dawn Kawamoto Former Staff writer, CNET News

Dawn Kawamoto covered enterprise security and financial news relating to technology for CNET News.

Dawn Kawamoto

Aug. 14, 2006 10:35 a.m. PT

Oracle announced Monday that it plans to invest $125 million in India's I-flex Solutions, marking an increase in its ownership stake in the software company.

Oracle's pending investment in I-flex, which makes analytical software for the banking industry, will increase its ownership stake to 55.1 percent from its previous level of 52.5 percent.

Oracle has previously said that it wants to delve deeper into particular industries, such as retail via its buyout of Retek and logistics and transportation management via its acquisition of G-Log.

The new money for I-flex, which is based in Mumbai, builds on a previous Oracle investment announced a year ago. Oracle, an enterprise applications and database company, purchased in August 2005 a 43 percent stake of I-flex held by Citigroup Venture Capital International.

Oracle said it will also make an offer to I-flex investors to acquire up to an additional 20 percent of the company, as required by Indian law.