India-based banking software specialist I-flex Solutions today (14 August) announced it has agreed to pay $122.6m in cash to acquire US-based anti-money-laundering and compliance software specialist Mantas.

The deal would be the largest all-cash acquisition by an Indian software firm, and is funded by I-flex selling a new allotment of shares to current majority stakeholder Oracle.

I-flex said Mantas' Behaviour Detection Platform, which can spot suspicious transactions and behaviour by brokers, would allow it to create an integrated risk and compliance system built on its existing Reveleus suite, with functionality to track regulatory breaches and money laundering.

The company predicted sales of such risk and compliance management platforms will reach $20bn by 2008. It added that the list of the two companies' customers reads like a "‘who’s who of tier 1 global financial institutions", and includes ABN Amro, Barclays, Bear Stearns, Citigroup, Lloyds TSB, Wachovia and Wells Fargo.

Simon Moss, chief executive of Mantas, said in a statement that the deal would help banks' governance efforts. "I-flex Solutions’ leadership in risk and compliance in financial institutions, combined with Mantas’ extensive leadership in financial services compliance, particularly in institutional brokerage and capital markets, offer the most comprehensive solution for our clients,” he added.