In a major acquisition deal in the IT space, global tech giant Oracle said Tuesday it would buy a majority stake in India's leading banking software maker i-flex solutions for $909 million.

Under the agreement, Oracle will acquire Citigroup Venture Capital's 41 percent stake in Mumbai-headquartered i-flex for $593 million.

As required by Indian law, Oracle will also make an open offer to purchase an additional 20 percent of the Indian company's shares outstanding from the remaining shareholders for $316 million.

Subject to regulatory approvals, the transaction is expected to close by the end of the current calendar year, said a Oracle statement issued here.

Software products from i-flex, which has provided software and services to 575 banks in 115 countries, support corporate banking, consumer banking, investment banking, Internet banking, asset management, and investor services.

"Banking is a strategic industry for Oracle with nine out of the top 10 banks already running Oracle ERP applications," said Oracle chief executive officer Larry Ellison.

"Oracle's overall application strategy is to go beyond ERP and offer customers richer industry-specific functionality. i-flex gets us there in banking," he said in the statement.

The current i-flex management team will continue to run the company and will align product development, sales, marketing, and services activities with Oracle.

Oracle President Charles Phillips will join the i-flex board. The Indian software major's shares will continue to be traded on the Bombay Stock Exchange and the National Stock Exchange.

"Aligning with Oracle, we can jointly offer an unmatched value proposition to our global customers with truly integrated solutions across the front, middle, and back office," said i-flex solutions chairman Rajesh Hukku.