Tata Consultancy Services (TCS), the country's largest software exporter, on Monday said it has entered into an agreement with Deutsche Bank AG under which it will acquire 100 per cent shares of Postbank Systems AG (PBS) from the German lender. The transaction is subject to both parties finalising further agreements, which they intend to do by end-2020. Besides, it is also subject to customary regulatory and governmental approvals. The IT major, however, did not disclose the financial transaction involved in the deal.
PBS is an IT service company that provides project management, application management and infrastructure support services to Postbank and other subsidiaries of Deutsche Bank.
Following the acquisition, PBS and its around 1,500 employees will become part of TCS. "This will further add to TCS' scale in Germany and strengthen its growth outlook. TCS is ranked by analysts as the fastest-growing IT service provider in Germany with a 10-year CAGR of over 24 per cent," the company said in a press release.
"We are pleased to deepen our longstanding partnership with Deutsche Bank, continue to help accelerate their digital transformation, and to acquire market specific capabilities in the banking domain," said N G Subramaniam, Chief Operating Officer and Executive Director, TCS. "We warmly welcome Postbank Systems' IT professionals into the TCS family, and invite them to avail of the learning and development opportunities here, and help script the next chapter of TCS' growth in Germany."
"As part of our move to one technology organisation, we are consolidating the IT platform for our retail banking brand Postbank into the Deutsche Bank platform," said Bernd Leukert, Chief Technology, Data and Innovation Officer, Deutsche Bank.
Present in Germany since 1991, TCS currently partners with over 100 German corporations in their growth and transformation journeys, including 17 of the DAX30. TCS has been ranked as the best in customer satisfaction for the last seven years in a row in the largest independent survey of CxOs of the top IT spending organisations in Europe, conducted by Whitelane Research, it claimed.
Ahead of the announcement, shares of TCS closed Monday's trade at Rs 2,725.90, up 0.65 per cent, against previous closing price of Rs 2,708.25.