The acquisition agreement aligns with Tech Mahindra’s vision to expand its BFSI business worldwide
Indian multinational technology organization- Tech Mahindra has reportedly agreed to buy 100% shareholding of Payments Technology Services Ltd. (PTSL)- a subsidiary of an American company- FIS for INR 66 crores or USD 9 million.
For the record, the transaction will provide Tech Mahindra access to licenses and IPs for two products-Multi-Bank System (MBS) and Open Payment Framework (OPF). Additionally, the agreement is expected to close by March 31, 2021.
Incorporated in March 2007, PTSL is a payment tool provider that focuses on advancing banking and financial services. Headquartered in Hong Kong, the company comprises nearly 109 employees. The turnover of the company for the financial year ended December 31, 2019, was valued at USD 5.4 million.
A statement issued by Tech Mahindra reads that it has signed a professional services agreement with FIS to expand its enterprise payments and banking offerings. It further states that the agreement aligns with the aim of Tech Mahindra to expand its BFSI business worldwide. The IT giant is also likely to build a Centre of Excellence in Chennai.
According to Vivek Agarwal, Global Head for Healthcare and Financial Services and Head of Corporate Development at Tech Mahindra, BFSI has emerged as one of the fastest-growing segments for Tech Mahindra and the company now holds a strong presence across regions like Asia Pacific, Europe, and North America.
He further added that the acquisition works in line with the company’s TechMNxt charter and aims at strengthening global payment capabilities of the company, offering its customers end-to-end payments and expanding their expertise to digital and core banking capabilities.