Indian IT giant Tata Consultancy Services (TCS) has completed the acquisition of Postbank Systems (PBS) from the German banking group Deutsche Bank.
As per the agreed terms, TCS has completed the transaction by purchasing 100% shares in Postbank Systems.
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PBS is the IT unit of Deutsche Bank’s retail banking subsidiary Postbank AG. It employs nearly 1,500 people across nine locations in Germany.
As a result of this acquisition, TCS has absorbed the PBS’ workforce in the country.
Deutsche Bank inked an agreement with TCS to divest its IT unit in November last year.
TCS said that it would take over PBS through its TCS Netherlands subsidiary.
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By GlobalDataIn the latest regulatory filing at Bombay Stock Exchange (BSE), TCS said: “The acquisition was to be completed by year-end 2020 subject to customary regulatory and governmental approvals.
“This is to inform you that the aforesaid acquisition of Postbank Systems AG has been completed today.”
TCS added that “100% of the shares will be acquired by TCS Netherlands BV (a subsidiary of TCS)” and the “estimated transaction value at a symbolic €1”.
The acquisition of PBS is expected to scale up TCS’ existing business – established in 1991 – in Germany.
PBS offers services like infrastructure operations, application operations, management and development, as well as business consulting for retail banking.
According to a previous filing, PBS will sell significant assets and forward contracts to Deutsche Bank. It expects the revenue in 2021 to be nearly €260m.
Currently, TCS works with over 100 German companies.
According to media reports, analysts ranked TCS as the fastest growing IT services provider in the country with a 10-year compound annual growth rate (CAGR) of over 24%.
