India’s second largest IT services firm Infosys on Thursday said it will acquire 75 percent stake in ABN AMRO Bank’s wholly-owned subsidiary, Stater, for 127.5 million euros (about Rs 989 crore).
Both the companies have signed an agreement to this effect. Founded in 1997, Stater provides end-to-end mortgage administration services in the Netherlands, Belgium and Germany.
Infosys President Mohit Joshi said that this transaction strengthens our approach to offer clients digital platforms and industry focused solutions. It brings together our complementary capabilities to enhance the value we offer to our financial services clients. The current management team of Stater will continue to steer the company, it added.
While mortgages are a key product for ABN AMRO, providing administrative mortgage services is not a core activity. That’s why we are very pleased with Infosys as Stater’s new majority shareholder.
Christian Bornfeld, Member of the Executive Board of ABN AMRO has said that they will keep a strategic interest of 25 percent and will continue to be an important client to Stater.
Infosys said mortgage services is a focus area for large corporations in the financial sector, given the importance of the asset on a bank’s balance sheet.
Infosys also said that the specialised knowledge and experience of Stater in the mortgage services market, combined with the global reach, AI, digital transformation and automation capabilities of Infosys, can potentially create differentiated solutions for the market.
In a regulatory filing, Infosys added that it will have the rights of a majority shareholder as part of the terms of the shareholders’ agreement.
It concluded by saying that this would includes the right to appoint majority of directors in the supervisory board, right to subscribe to new shares, right of first refusal in the event of transfer of shares, right to restrict amendment of articles, issuance, redemption and repurchase of shares, merger, demerger, bankruptcy or Liquidation among others.
