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Infosys has strengthened its ability to provide technology services in the area of mortgage processing by acquiring 75 percent of Stater NV, a wholly owned subsidiary of ABN Amro Bank NV, a longstanding client of the Bengaluru IT company. Stater offers pure-play, end-to-end mortgage administration services in The Netherlands, Belgium and Germany. ABN Amro will continue to hold the remaining 25 percent of the shareholding, Infosys said. The all-cash deal is worth approximately $143 million, the IT company said.
Stater brings deep European mortgage expertise and a digital platform to provide superior customer experience. “The acquisition of Stater is in sync with Infosys’s strategy of strengthening its position in Continental Europe and we expect revenue for the business to be approximately $200 million, with high single digit margin,” Aniket Pande and Rajat Gandhi, analysts at Mumbai brokerage Prabhudas Lilladher, wrote in a report in March.
“This transaction strengthens our approach to offer clients digital platforms and industry-focussed solutions. It brings together our complementary capabilities,” said Mohit Joshi, president at Infosys.
(This story appears in the 26 April, 2019 issue of Forbes India. You can buy our tablet version from Magzter.com. To visit our Archives, click here.)