Oracle, which had hit the headlines across the world by snapping up the Peoplesoft for $ 10.6 billion in January this year, will buy Citigroup Venture Capital's 41 percent stake in I-Flex Solutions, the Bangalore-based company, for $ 593 million and make a mandatory open offer to secure an additional 20 percent of equity from remaining shareholders at a cost of $ 316 million.

The Indian company has carved a niche in highly-competitive global market to provide software services for corporate banking, consumer banking, investment banking, internet banking and asset management and investor services. It has provided services for 575 banks in 115 countries. The Indian firm was set up in 1992 with funds from Citigroup.

Oracle Corporation President Charles Phillips said with the acquisition of I-Flex, Oracle will get a lot of muscle in banking and financial service sectors.