i-flex Gets Into AML Space With Mantas Buy

by Rajendra Chaudhary    Aug 14, 2006

Financial solutions provider, i-flex solutions has announced that it is acquiring US based anti-money laundering (AML) and compliance software vendor Mantas. With the all cash, $122.6 million acquisition, i-flex intends to expand its existing portfolio of offerings and tap into the growing global fraud detection and compliance software market.

Mantas offers software applications that allow financial institutions to conform to global regulatory compliance mandates and ensure loss prevention and revenue generation.

The applications are based on Mantas’ Behavior Detection Platform, a web-enabled, end-to-end solution capable of bringing together data from firms’ legacy systems with market data and facilitate enterprise-wide data monitoring and analysis.

Rajesh Hukku, Chairman & MD, i-flex said, “The Mantas acquisition completes the picture for us in many ways. This will not only allow us to gain Mantas’ clients and its revenues but increased domain expertise that we require to expand our existing product portfolio.”

The new purchase by i-flex comes at a time when there is quite a buzz around the whole area of governance and compliance for banks and financial institutions, not just globally but in India as well. The domestic market for AML software alone is currently estimated to be around Rs.200 crore.

Giving a perspective on the Indian opportunities, Hukku said, “The market is still warming up to AML and is still in its infancy. Indian banks and financial institutions are only beginning to experiment with AML solutions on a very basic level. However, directives by regulatory bodies like SEBI and RBI and awareness about the benefits of AML deployments among financial institutions could accelerate the process in the coming years.”

i-flex has already created a name for itself in the global risk and compliance market with its Reveleus solution suite. Prior to the acquisition, it also worked as a system integrator for Mantas and hence is quite confident of integrating it with its own products.

However, Hukku didn’t disclose whether they would rename Mantas offerings or offer it under the original brand name. Some of Mantas’ customers include financial institutions like ABN Amro, Barclays, Bear Stearns, Citigroup and Merrill Lynch.