IT services major Tech Mahindra has announced to acquire 100% shareholding of the Hong Kong-based payment solution provider named Payments Technology Services Limited. Payments Technology Services came into existence on March 28, 2007 and is also a step-down subsidiary of Fidelity Information Services (FIS). After the acquisition news went viral, Tech Mahindra shares rose by 0.90% to Rs 1073.75. Tech Mahindra is engaged in the business of computer programming and consultancy services.
As per the news, the acquisition will be completed by the end of March 2021 at a cash consideration of $9 million, which is approximately Rs. 66 crores. With this acquisition, Tech Mahindra will gain access to the IPs and licenses for Payments Technology Services’ two products, namely, Open Payment Framework (OPF) and Multi-Bank System (MBS).
The acquisition will help Tech Mahindra to steer their business towards various product implementations, besides aiding the company to participate in the banking transformation programs. Since its inception, Payments Technology Services Limited has focused on providing banking and financial services, which are acronym as BFS. This acquisition will thus open multiple opportunities for Tech Mahindra following its collaboration with FIS.
In a statement released by Tech Mahindra, the company said it had entered into a professional agreement with FIS to scale up its enterprise payments and banking capabilities.
The statement read,
Vivek Agarwal, the Head Corporate Development and Global Head for Financial Services and Healthcare at Tech Mahindra, said,