Deutsche Bank to sell IT unit to TCS1 min read . Updated: 10 Nov 2020, 05:35 AM IST
Deutsche Bank had set 2022 as the deadline for the technology migration of Postbank’s systems
BENGALURU : Tata Consultancy Services (TCS) Ltd on Monday announced the acquisition of Postbank Systems AG, the technology services unit of Frankfurt-based Deutsche Bank AG. The value of the deal was not disclosed.
The transaction is expected to be completed by the year-end, subject to regulatory approvals.
TCS, India’s largest information technology (IT) services company, will acquire the shares of Postbank Systems and absorb its 1,500 employees. Postbank Systems provides project management, application management and infrastructure support services to Deutsche Bank.
“We are pleased to deepen our long-standing partnership with Deutsche Bank, continue to help accelerate its digital transformation, and to acquire market-specific capabilities in the banking domain," N.G. Subramaniam, chief operating officer of TCS, said in a statement.
Deutsche Bank is an existing customer of TCS.
TCS, which has been present in Germany since 1991, said it currently has partnerships with more than 100 German corporations. The acquisition will help the Mumbai-based company expand in Germany and strengthen its growth outlook.
“As part of our move to one technology organization, we are consolidating the IT platform for our retail banking brand Postbank into the Deutsche Bank platform. We are confident that TCS is the ideal owner for Postbank Systems," said Bernd Leukert, chief technology, data and innovation officer, Deutsche Bank.
Deutsche Bank, in a press note, said the transaction “will result in the acceleration of expected transformation impacts of approximately €120 million as part of the strategy announced in July 2019".
The bank had set 2022 as the deadline for the technology migration of Postbank’s systems.
The Postbank acquisition can be compared with TCS’s acquisition of the India-based captive business processing outsourcing (BPO) arm of Citi for approximately $505 million in 2008.
Both acquisitions strengthened TCS’s portfolio in the banking and financial services sector.
TCS has been relatively less active in acquisitions compared with its peers Infosys Ltd and Wipro Ltd.
Its last acquisitions were in November 2018, when it acquired British digital design studio W12 Studios; and BridgePoint Group, LLC, a US management consulting company.