IT providers main Tech Mahindra on Tuesday mentioned it can purchase Funds Expertise Companies Ltd (PTSL), a step-down subsidiary of fintech agency FIS, for USD 9 million (about Rs 66 crore). The acquisition will give Tech Mahindra entry to IPs and licenses for 2 merchandise – Open Fee Framework (OPF) and Multi-Financial institution System (MBS), a regulatory submitting mentioned.
“The acquired capabilities within the funds area will give us entry to IPs and licenses for two merchandise, which is in keeping with our technique of pivoting the enterprise in direction of product and platform implementations and collaborating within the banking transformation programmes,” Tech Mahindra added.
This acquisition will open up different alternatives for Tech Mahindra as a bigger companion with FIS throughout quite a lot of areas, it mentioned.
The price of acquisition is USD 9 million and the transaction is predicted to shut by March 31, 2021, the submitting added.
Established in March 2007, PTSL is a funds options supplier with concentrate on banking and monetary Companies (BFS). The corporate is headquartered in Hong Kong and has roughly 109 workers. Its turnover for the monetary 12 months ended December 31, 2019 was USD 5.four million.
In a press release, Tech Mahindra mentioned it has inked knowledgeable providers settlement with FIS to scale its enterprise funds and banking capabilities.
“This settlement aligns with Tech Mahindra’s technique to develop its BFSI (banking, monetary providers and insurance coverage) footprint globally. In assist of this technique, Tech Mahindra will even construct a state-of-the-art Centre of Excellence (CoE) in Chennai, India,” it added.
Vivek Agarwal, Head Company Growth and International Head for Monetary Companies and Healthcare at Tech Mahindra, mentioned BFSI is without doubt one of the quickest rising trade segments for Tech Mahindra and the corporate now has a robust presence throughout key areas together with North America, Europe and Asia Pacific.
“This transfer is according to our TechMNxt constitution and is aimed toward strengthening our world funds capabilities, and provide shoppers end-to-end funds transformation providers and develop this experience to core banking and digital,” he added.