The company also announced a 73.61 per cent increase in quarterly profits at Rs 23.16 crore (Rs 231.6 million) as it registered a healthy growth in products and services and improved its margins.
"The acquisition will give us direct entry into UK's BFSI space and will enable us direct entry into UK's lucrative asset management and brokerage businesses," Amar Chintopanth, CFO, 3i Infotech told PTI.
Rhyme Systems, which has a revenue of over £15 million and employs 125 people, has eight of top eleven UK private wealth asset management companies as its clients including the likes of Brewin Dolphin, Coutts RBS, Jupiter, M&G, Barclays and LCH Clearet.
"The acquisition would be funded from the money that we raised through FCCBs recently," Chintopanth said adding Rhyme's revenues would reflect on 3i's balance sheet during this quarter.
The company had raised around $70 million through two FCCB issues recently and said the money would be used to fund acquisitions and expansion of international operations.
About the quarterly financial results, Chintopanth said as the profit increased, margins were improved by around 3 per cent at the EBITDA level.
The total revenue of the company stood at Rs 148.9 crore (Rs 1.48 billion) up 51 per cent as against Rs 98.4 crore (Rs 984 million) for the corresponding quarter in the previous year.
As we registered impressive growth, we are changing our guidance for the fiscal year. Earlier, we expected around 25-30 per cent increase in revenues. We are revising it to 50 per cent," Chintopanth said. The company expects to register Rs 620-640 crore (Rs 6.2-6.4 billion) in revenues during the current financial year.
For the quarter, software products contributed 47 per cent, while services contributed 53 per cent with Asia Pacific and US contributing more to the revenues.
The total revenue stood at Rs. 282.1 crore (Rs 2.82 billion), as against Rs 188.3 crore (Rs 1.88 billion) for the corresponding period of the previous year registering a growth of 49.8 per cent.
Profit after tax but before minority interest grew to Rs 44.5 crore (Rs 445 million) as against Rs 23.6 crore (Rs 236 million) posted a year ago.
