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 (around Rs 989 crore). Stater, founded in 1997, provides end-to-end mortgage administration services in the Netherlands, Belgium and Germany.
As part of the deal, Infosys will acquire 75 per cent stake in Stater, while the remaining 25 per cent will continue to be held by ABN Amro, Infosys said in a statement. The deal is expected to close during the first quarter of fiscal 2020, subject to customary closing conditions, it added.
India’s second largest IT firm — Infosys — said the partnership is in alignment with its strategy to strengthen its mortgage servicing capabilities in Continental Europe.
“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. “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.
“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. This includes the right to appoint majority of directors in the supervisory board, right to subscribe to new shares, right of first refusal in the event of transfer of shares, right to restrict amendment of articles, issuance, redemption and repurchase of shares, merger, demerger, bankruptcy or liquidation among others, it added. —With PTI