Infosys acquires ABN arm
The transaction is expected to close in the first quarter of the next fiscal
- Published 29.03.19, 12:29 AM
- Updated 29.03.19, 12:29 AM
- 2 mins read
Infosys on Thursday said it was picking up a 75 per cent stake in Stater N.V, a wholly owned subsidiary of ABN Amro Bank N.V, in an all-cash deal worth Euro 127.5 million (around Rs 990 crore).
Stater, founded in 1997, provides end-to-end mortgage administration services in the Netherlands, Belgium and Germany. It is a market leader in the Benelux (Belgium, Netherlands & Luxembourg) region, operating across the mortgage and consumer lending value chain with strong capabilities in digital origination, servicing and collection.
For Infosys, the acquisition is expected to bring deep European mortgage expertise and a robust digital platform to drive better customer experience. A statement from the Bangalore-based firm said the current management team of Stater would continue to steer the company.
The transaction is expected to close in the first quarter of the next fiscal. According to Infosys, the stake purchase is in line with its strategy to strengthen mortgage servicing capabilities in Europe. Mortgage services are a focus area for large corporations in the financial sector given the importance of the asset on a bank’s balance sheet.
The specialised knowledge and experience of Stater in the mortgage market, coupled with the global reach, digital transformation and automation capabilities of Infosys is expected to create unique solutions for the market.
In a filing to bourses, the company said Infosys Consulting Pte Ltd (IC), its wholly owned subsidiary, will be entering into an agreement with ABN Amro Bank N.V and Stater wherein Infosys Consulting will acquire a 75 per cent stake in Stater from ABN Amro by way of an acquisition of existing shares. ABN AMRO will continue to hold the remaining 25 per cent of the shareholding.
Infosys added as part of the terms of the shareholders’ agreement, it has the rights of a majority shareholder, including the right to appoint majority of the directors on the supervisory board, right to subscribe to new shares, right of first refusal in the event of transfer of shares, right to restrict amendment of Articles and issuance or repurchase of shares among others.
“This transaction brings together our complementary capabilities to enhance the value we offer to our financial services clients. We are excited to welcome Stater’s talented team to the Infosys family, thereby enhancing our presence in Europe,” Mohit Joshi, president of Infosys, said.
The stock markets reacted positively to the announcement with shares of Infosys finishing with gains of 1.30 per cent, or Rs 9.45, at Rs 738.50.