TCS Will Acquire Deutsche Bank’s IT Unit & Absorb 1500 German Employees; 2nd Biggest Acquisition By TCS?
As a part of the job cutting target, Deutsche Bank AG has decided to sell off a technology services unit to Tata Consultancy Services Ltd.
TCS is one of the leading IT service providers in India and is also Asia’s biggest software exporter by market value.
Read on to find out all the details!
Deutsche Bank To Sell Off Technology Services Unit To TCS To Meet Job Cutting Target
Germany’s largest lender, Deutsche Bank AG’s decision to sell off a technology services unit is a part of the ambitious job cutting target set by the CEO Christian Sewing.
As per reports, the technology services unit that will be sold is Postbank Systems AG and the sale will be finalized by the end of this year. A statement by the Deutsche Bank has confirmed this news.
Tata consultancy will be taking over 1500 employees of Postbank in Germany. The CEO Sewing had finalized a restructuring plan that will lay off as much as 18000 jobs, of which, half were in Germany.
TCS Chief Operating Officer NG Subramaniam said in a statement, “We are pleased to deepen our long-standing partnership with Deutsche Bank, continue to help accelerate their digital transformation, and to acquire market specific capabilities in the banking domain.”
Deutsche Bank To Be Impacted By €120 Million; TCS’s Second Biggest Acquisition?
The statement has also revealed that the bank will be impacted greatly, by as much as €120 million ($140 million).
This will help the Deutsche Bank to save future redundancy costs as well as safeguard the jobs of employees at PB systems for a longer time span. The price tag on the deal is nothing but a symbolical euro. The bank will continue to pay the PB Systems for any services that are similar to any intercompany agreements that are already implemented.
Postbank AG was recently resolved by Deutsche Bank, prior to which it was a separate subsidiary.
This will be TCS’s second biggest acquisition after its acquisition of Citigroup Inc.’s back-office unit in 2008, for which, the company paid $505 million. The company already offers its services to more than 100 German companies.