Home >Companies >News >Infosys to buy 75% stake in ABN AMRO's Stater for €127 million

Mumbai: India’s second largest IT services firm Infosys on Thursday said it will acquire 75% stake in ABN AMRO Bank’s wholly owned subsidiary, Stater, for €127.5 million (about 989 crore). Both the companies have signed an agreement to this effect.

Founded in 1997, Stater provides end-to-end mortgage administration services in the Netherlands, Belgium and Germany.

As part of the deal, Infosys will acquire 75% of the shareholding in Stater, while ABN AMRO will continue to hold the remaining 25%, Infosys said in a statement.

Infosys said the partnership is in alignment with its strategy to strengthen its mortgage servicing capabilities in Continental Europe. The transaction is expected to close during the first quarter of fiscal 2020, subject to customary closing conditions, it added.

“This transaction strengthens our approach to offer clients digital platforms and industry focused solutions. It brings together our complementary capabilities to enhance the value we offer to our financial services clients," Infosys president Mohit Joshi said.

The current management team of Stater will continue to steer the company, it added.

“While mortgages are a key product for ABN AMRO, providing administrative mortgage services is not a core activity. That’s why we are very pleased with Infosys as Stater’s new majority shareholder. ABN AMRO will keep a strategic interest of 25% and will continue to be an important client to Stater," Christian Bornfeld, member of the executive board of ABN AMRO, said.

Infosys said mortgage services is 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 services market, combined with the global reach, AI, digital transformation and automation capabilities of Infosys, can potentially create differentiated solutions for the market," it added.

In a regulatory filing, Infosys said it will have the rights of a majority shareholder as part of the terms of the shareholders’ agreement.

On Thursday, Infosys shares rose 1.30% to 738.50 apiece on the BSE while the benchmark Sensex gained 1.08% to end the day at 38,545.72 points.

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