Monday, November 26, 2007

J&B Acquisition

Payment/remittance processing specialist J&B Software, out of Bala Cynwood, PA was recently acquired by India-based software and services provider 3i Infotech. According to a J&B press release, 3i has $300 million in annual revenue. According to 3i's latest financial report, 31% of the compay's business last quarter was in India, 25% in the U.S., with Western Europe, the Middle East and Africa, and Asia Pacific combining fo the remaining 44%.

J&B was founded by Indian-native Bala Balasubramanian, who resigned from the company following the completion of the acquistion.

One thing we will keep an eye on is the relationship between 3i and document and data capture specialist Top Image Systems (TIS). From all accounts, TIS and J&B had been executing fairly successfully on a recently formed partnerhip, which we expect to continue through the acquisition. Looking forther down the road, both TIS and 3i have global ambitions and global infrastructures. We suspect these shared visions could lead to an even tighter relationship.

Cheers.

Ralph

3 comments:

Anonymous said...

I think TISA gets bought out in next 6 months, could be for 100% premium from these levels.

DIReditor said...

It looks like they're carrying market cap of just over $20 million with some $15 million in the bank. I assume you're saying that a $40 million price tag for this $30-million-per-year vendor would not be out of the quesiton.

Anonymous said...

Exactly....their big name client base would be very valuable to several software outfits....I think you could see them taken out at $5-6 a share.