Tech Mahindra to acquire in Hong Kong-based Payments Technology Services for $ 9 million

Tech Mahindra has agreed to acquire 100 per cent shareholding of Payments Technology Services for a cash consideration of USD 9 million (about Rs 66 crore). Payments Technology Services Limited is headquartered in Hong Kong and has approximately 109 employees.

Tech Mahindra in a regulatory filing on Tuesday said, "We wish to inform that Tech Mahindra Limited has agreed to acquire 100% shareholding of Payments Technology Services Limited."

The transaction is expected to close by 31 March 2021. Turnover of the Company for the financial year ended December 31, 2019, was USD 5.4 million.

The Payments Technology Services entity is a step-down subsidiary of Fidelity Information Services (FIS). The acquired capabilities in the payments space will give Tech Mahindra access to IPs and licenses for 2 products - Open Payment Framework (OPF) and Multi-Bank System (MBS), which is consistent with their strategy of pivoting the business towards product and platform implementations and participating in the banking transformation programs. This acquisition will open up other opportunities for Tech Mahindra as a larger partner with FIS across many areas.

Payments Technology Services Limited was established on March 28, 2007, and is a payments solutions provider with a Banking and Financial Services (BFS) focus and is a step-down subsidiary of FIS. The turnover of the Company for the last three fiscal years ending:

a) December 31, 2019: USD 5.4 million.

b) December 31, 2018: USD 5.1 million.

c) December 31, 2017: USD 4.4 million.