Infosys to buy 75% in ABN Amro's mortgage services arm for $143.5 million
28 Mar 2019
1
Infosys Ltd, India’s second-biggest IT services company, today announced that it would acquire a 75 per cent stake in ABN Amro Group NV’s mortgage administration services unit for 127.5 million euros ($143.53 million).
Infosys will acquire the stake in Stater NV through its unit, Infosys Consulting Pvt Ltd, and the transaction is expected to close in the first quarter of fiscal 2020.
Based in Amsterdam, ABN Amro, the third largest bank in the Netherlands and the partnership strengthens Infosys’ position as a leading technology and business process management provider across the mortgage services value chain, improving experience and operational efficiencies, Infosys stated in a release.
The acquisition us is in line with Infosys’ strategy to strengthen its mortgage servicing capabilities in Continental Europe, the software services company said.
As part of the announced partnership, Infosys will acquire 75 per cent of the shareholding in Stater NV, a wholly owned subsidiary of ABN Amro Bank NV that offers pure-play, end-to-end mortgage administration services in the Netherlands, Belgium and Germany.
ABN Amro will continue to hold the remaining 25 per cent stake in Stater, which operates in the Netherlands, Belgium and Germany.
Stater is a market leader in the Benelux region, operating across the mortgage and consumer lending value chain with deep capabilities in digital origination, servicing and collection. Stater also brings deep European mortgage expertise and a robust digital platform to drive superior customer experience.
The current management team of Stater will continue to steer the company.
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 specialized 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.
“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. We are excited to welcome Stater’s talented team to the Infosys family, thereby enhancing our presence in Europe,” Mohit Joshi, president, Infosys, said.
“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.
The transaction is expected to close during the first quarter of fiscal 2020, subject to customary closing conditions.
.webp)
.webp)
