The Mumbai-based largest Indian IT services giant TCS has made a groundbreaking acquisition in Germany.
The IT giant has purchased 100% shares of the German multinational investment bank Deutsche Bank AG’s technology services unit Postbank Systems (PBS).
This way, TCS will rescue jobs of nearly 1500 employees in the Germany based Deutsche Bank.
This acquisition will provide a strengthened growth prospects for TCS in the German markets.
TCS Acquires PBS for Only One Euro
In its press release published on November 9, TCS has announced that as per an agreement with Deutsche Bank AG, TCS will acquire 100% shares of Postbank Systems AG (PBS) from Deutsche Bank AG.
Postbank Systems is a full-range captive IT service provider that provides project management, application management and infrastructure support services to Postbank and other subsidiaries of Deutsche Bank.
TCS has agreed to acquire PBS at a rate cheaper than a cup of coffee in India.
It will be acquiring PBS for one euro, which amounts to Rs 87.61.
Through this, TCS will save jobs of 1500 employees, who would have gotten laid off, as part of Deutsche Bank’s restructuring drive, announced in July 2019.
How will This Deal Affect TCS?
As per the investment bank and financial services company Macquarie, the PBS acquisition shall add $310 million in TCS’ revenue for 2021.
It will assuredly bolster TCS’ hold on the German market.
The deal is intended to close by the end of 2020, after both parties finalize all the agreements.
“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”, says N G Subramaniam, Chief Operating Officer and Executive Director, TCS.
“TCS is already a trusted IT service partner for Deutsche Bank and this strengthens our relationship further. We are confident that TCS is the ideal owner for Postbank Systems. It provides clarity to Postbank Systems staff and the opportunity to become part of the success and growth story of TCS.”, says Bernd Leukert, Chief Technology, Data and Innovation Officer, Deutsche Bank.
TCS’ Presence in Germany
TCS already has a strong presence in Germany, as it has been functioning there since 1991.
The Indian IT giant currently partners with over 100 leading German corporations, including 17 of the DAX30, handling their growth and transformational journeys.
Furthermore, TCS is ranked as the fastest-growing IT service provider in Germany with a 10-year CAGR of over 24%, by analysts.