The acquisition would grant Tech Mahindra access to IPs and licenses for two products-Open Payment Mechanism (OPF) and Multi-Bank System (MBS), the regulatory filing said.
IT services Giant Tech Mahindra reported on Tuesday that it would acquire Payments Technology Services Ltd (PTSL), a downstream subsidiary of Fintech company FIS, for USD 9 million (about Rs 66 crore).
The acquisition would grant Tech Mahindra access to IPs and licences for two items the Open Payment Mechanism (OPF) and the Multi-Bank System (MBS), according to the regulatory filing.
“The acquired capabilities in the payments space will give us access to IPs and licences for 2 products, which is consistent with our strategy of pivoting the business towards product and platform implementations and participating in the banking transformation programmes,” Tech Mahindra said.
This transaction would open up additional opportunities for Tech Mahindra as a larger FIS partner in a variety of areas, he added.
The purchase expense is USD 9 million and the deal is scheduled to close by 31 March 2021, the filing added.
Founded in March 2007, PTSL is a payment solutions company focusing on banking and financial services (BFS). The business is based in Hong Kong and has about 109 staff. Its sales for the financial year ended 31 December 2019 was USD 5.4 million.
In a tweet, Tech Mahindra announced that it has entered into a professional services agreement with FIS to scale up its corporate payments and banking capability.
“This agreement aligns with Tech Mahindra’s strategy to expand its BFSI (banking, financial services and insurance) footprint globally. In support of this strategy, Tech Mahindra will also build a state-of-the-art Centre of Excellence (CoE) in Chennai, India,” he said.
Vivek Agarwal, Head of Business Growth and Global Head of Financial Services and Healthcare at Tech Mahindra, said BFSI is one of the fastest-growing segments of the Tech Mahindra industry and now has a large presence across key regions, including North America, Europe and Asia Pacific.
“This move is in line with our TechMNxt charter and is aimed at strengthening our global payments capabilities, and offer clients end-to-end payments transformation services and expand this expertise to core banking and digital,” he said.