In a bid to expand its footprint in the BFSI (banking, financial services and insurance) sector, homegrown information technology and business process outsourcing services provider Tech Mahindra has signed a professional services agreement with FIS (Fidelity Information Services).
Under the agreement, the Pune-headquartered company said it plans to acquire Payments Technology Services (PTSL), a step-down subsidiary of the Fortune 500 fintech giant, for $9 million (nearly Rs 66 crore at current exchange rate).
Based in Hong Kong, Payments Technology Services provides banking and payments solutions to financial services firms in Asia.
The deal, which is expected to get completed by March 31, will give Tech Mahindra access to IPs and licenses for two of key products -- Open Payment Framework (OPF) and Multi-Bank System (MBS).
PTSL operates with a workforce of over 100 employees and has posted a turnover of $5.4 million at the end of December 2019, according to a BSE filing by Tech Mahindra.
In addition to the acquisition, the company has also announced that it plans to open a centre of excellence (CoE) in Chennai to further grow and better serve its customers in the BFSI space, according to a statement.
The company said the deal is consistent with its strategy of pivoting the business towards product and platform implementations and participating in the banking transformation programmes. It also expects the deal to open up other opportunities with FIS across a number of areas in the BFSI sector.