India’s second largest IT services firm Infosys on Thursday said it will acquire 75 per cent stake in ABN AMRO Bank’s wholly-owned subsidiary, Stater, for 127.5 million euros (about Rs 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 per cent of the shareholding in Stater, while ABN AMRO will continue to hold the remaining 25 per cent, 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 per cent 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.