3i Infotech Ltd is buying out the entire stake of the largest independent remittance provider in the US, Regulus Group LLC for $80 million with up to an additional $20 million towards an earn-out linked to certain performance parameters.
Upon closing, Kathleen Hamburger, current president and chief operating officer will replace Richard Long as the current CEO, who plans to step down
Regulus is the largest independent remittance provider and one of the leading providers of bills processing services in the US, addressing the full document lifecycle from print and electronic bill presentment to remittance, handling over 2.1 billion paper and electronic transactions annually. It processes one in every 50 check payments in the US and produces an estimated one of every 25 consumer statements generated in the US.
Under the terms of agreement, 3i would acquire the products, trademarks and product brands of Regulus, which serves nearly a third of Fortune 50 companies from the telecom, insurance, finance, healthcare, utility and energy sectors out of its client base of 150 customers.3i expects thge acquisition to provide it significant cross-selling opportunities.
Regulus was founded in 1995 as a provider of remittance processing solutions. on April 29, 2008 Regulus is the largest independent bill presentment and remittance processing Company, handling more than 2.1 billion paper and electronic transactions annually. The Company is headquartered in Napa, California and operates a nationwide network of 10 processing centers in California, Georgia, Illinois, New Jersey, North Carolina, Iowa and Texas.
"The acquisition of Regulus Group is a strategic one and will enable 3i Infotech to strengthen its positioning in the payment processing industry," said V Srinivasan, managing director and CEO, 3i Infotech said.
Regulus was advised by US investment banking firm Lana, Berry & Co., Boston.