On Friday, Infibeam Incorporation Limited put out information that it has invested Rs 150 crore for acquiring a 7.50 percent equity stake to take control in CCAvenue.
Further, according to the public statement released by Infibeam, the board has approved the Indian internet and e-commerce company's proposed investment of Rs 60 crore for acquiring a 3.85 percent stake of CCAvenue through its wholly owned subsidiary NSI Infinium Global Pvt. Ltd.
With this, the total investment made by Infibeam into CCAvenue rises to Rs 210 crore, representing an 11.35 percent stake in the company.
The company has also informed the exchanges that it has signed a binding addendum to the Memorandum of Understanding (MoU) and made the payment of Rs 150 crore to acquire the 7.50 percent equity stake with control of CCAvenue.
It was reported last month that Infibeam had signed an agreement to merge with the payment gateway. After the announcement, Vishal Mehta, Founder and CEO, Infibeam, told the media,
In June last year, we did a strategic investment in CCAvenue. We will integrate payment as part of our existing framework of build-a-bazaar, which is a distributed marketplace. As a result, we will meet the merchant requirement of a payment gateway.
With the latest investment, CCAvenue is valued at Rs 2,000 crore. Moreover, Vishal stated that promoters of CCAvenue will get shares of Infibeam after the merger and the subsequent regulatory approvals.
This month, the Economic Times reported that Infibeam had also signed an MoU to acquire DRC Systems Pvt. Ltd. through NSI Infinium Global Pvt. Ltd.
DRC Systems is cloud ERP (enterprise resource planning) solutions provider that is focused on developing customised software solutions for e-commerce applications.