IT firm 3i Infotech that signed an agreement with Cerberus Capital Management to sell its US- based Global Billing and Payment unit for USD 137-million (nearly Rs 617-crore), said it will use the garnered amount to repay its bank borrowings.

"We will use this money for repayment of our bank borrowings. Our net borrowing is around Rs 2,000-2,100-crore and from here we may get around Rs 600-crore, so the entire money will go for repayment of our bank borrowings," 3i Infotech Managing Director & Global CEO, V Srinivasan, told PTI.

The IT firm's subsidiary, 3i Infotech Financial Software, decided to sell the unit to Cerberus Capital Management, after a bidding process that lasted for two and half months, but he did not identify the bidders who participated in the bidding.

The transaction is expected to close within two months, subject to customary closing conditions and any regulatory approvals, 3i Infotech said.

"This enables 3i Infotech to go back to its roots as a significant IT products and services player while at the same time allowing the billing and payment unit to be acquired by an organisation interested in growing it as an independent company," Srinivasan said.

Cerberus Capital Management is a private investment firm with USD 23-billion of capital under management.

The firm provides IT services and BPO to 50 countries across five continents in sectors like banking, financial services, insurance, Government, manufacturing, retail and telecom, among others.

Srinivasan said the company presently does not plan to acquire a firm to expand its presence and said it would look only at the "organic growth model".

The company will focus on achieving a deeper penetration in the existing market, and is targeting its banking and financial services to provide a fillip in this regard.

The company's scrips ended at Rs 49.80 on the BSE, down 0.40 per cent from its previous close.