A team from IBM recently visited Polaris Software's facilities in Chennai, a development that could be a step towards acquiring a controlling stake in the company, according to industry sources.
Polaris' representatives, however, said that no one had recently carried out a due diligence exercise of the company. Polaris vice president, Aneesh Sen, in an e-mailed response said: " I wish to state that Polaris - as a company that is continuously innovating technology in the BFSI space has the need to discuss various technology options with different partners. Therefore, there is no other connotation to any recent visit by any company in particular."
Citigroup controls about 43.62 per cent of Polaris' equity. Polaris' promoters hold about 24.11 per cent of the company's equity.
There has been speculation in the recent past about the possibility of Citigroup selling its stake to another entity. Polaris CEO and promoter Arun Jain has denied that Citigroup is looking for a buyer. If Citigroup wants to sell its stake, Jain would have the first right to buy the same, say some analysts.
IBM competes with Oracle in the software products business. While IBM does not have products for a vertical, Oracle's acquisition of controlling stake in i-flex has given it access to a product in the financial services vertical.
IBM's interest in Polaris could stem from the software product for the financial services vertical that has been developed by the company.
