Polaris Financial Technology Ltd (formerly Polaris Software Labs) plans to allocate nearly $100 million to acquire two-three product companies in the next four years, said Arun Jain, Chairman and CEO, Polaris while addressing shareholders at the company’s 19th Annual General Meeting held on Monday.

As part of the company’s next phase of growth, Polaris will continue to identify its 'core assets' that will contribute to Polaris’ growth story.

Polaris is also looking at identifying and divesting 'non-core assets' within the next 12 months, he told shareholders. Polaris will focus on doubling its current revenues in the next four years.

To divest IdenTrust

Meanwhile, the Chennai-based company has decided to divest its US subsidiary IdenTrust. The business of IdenTrust Inc is classified by the US Government (CFIUS-Committee for Foreign Investments in US) as critical to its security infrastructure.

The technology and several patents owned by IdenTrust over the last few years have given cutting edge differentiation to the business of IdenTrust. For these reasons, the US Government imposed that the company must be controlled by US entities only. Accordingly, the company’s board has approved a decision to enter into negotiations with interested parties in the US in the next 12 months.

In April 2011, Polaris invested $20 million for an 85 per cent stake in IdenTrust. While Polaris had a majority in the shareholding pattern, Zions Bancorporation, among premier financial services companies in the US, had a minority equity holder in IdenTrust.

IdenTrust, which then had 62 employees, enabled companies to manage the risks associated with identity authentication. Its solution then protected $7 trillion worth online payments every year.

Polaris’ stock on the BSE closed at Rs 116.75, down 0.04 per cent over the previous day’s closing price.

>raja.simhan@thehindu.co.in

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