Oracle India may sell its non-core i-flex Solutions business
Tuesday, 10th May 2011
A day after Oracle India claimed that it was accelerating in India, reports say it may sell i-flex Solutions for $500 million.
Oracle India acquired i-flex Solutions which offers Flexcube, a popular banking solution and one of the most successful products to come out of India in 2005.
Economic Times said Oracle was selling i-flex as it was 'non-core' to its business. The database giant had also failed to find 'operational synergy' with the product, ET said. The 'non-core' claim is suspect. An enterprise software company with a strong presence in financial sector has a natural attraction towards a banking solution.
The lack of operational synergy is plausible but blame it on managerial failure than on any flaw in the initial assumptions that drove Oracle to buy i-Flex.
So, would Oracle India lose a successful business over a problem not difficult to fix? Yes, only if the buyer can meet expectations of Larry Ellison who is reportedly asking for $ 500 million.
The report triggers many questions. ET further says Credit Suisse is advising Oracle on the sale, which has drawn many suitors.
Publication : Economic Times
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