Tokyo-based IT services provider NTT Data plans to acquire majority stake in Mumbai-based payment solutions firm Atom Technologies, which is owned by 63 Moons Technologies, for $9.2 million. NTT Data has signed an agreement for the acquisition, which is likely to be closed in 120-150 days.
Launched in 2005 by 63 Moons (erstwhile Jignesh Shah-promoted Financial Technologies), Atom Technologies is a multi-channel payments platform covering PoS, online, IVR as well as mobile transactions.
Dewang Neralla, CEO of Atom Technologies, told BusinessLine that the acquisition will help Atom leverage NTT’s global presence in the payments space, besides allowing NTT to tap into the growing fintech sector in India. With a revenue of $19 billion, NTT has a big presence in South East Asia, and has acquired many companies in Hong Kong, Thailand, Malaysia. With Atom, it enters the Indian market.
“Once the deal is closed, we will see how Atom will fit into the requirements of NTT in the global market. In India, the next two-three years will see a massive growth in the payment space and NTT wants to tap that opportunity,” he added.
No layoffs
He also added that with the new parent in the system, Atom foresees certain changes in the company but does not expect any layoffs. Atom has about 250-odd employees and plans to hire about 150 more in the next one year.
Isao Arima, Senior Vice-President at NTT Data, said: “Our payment business in Japan, as well as South East Asia, will help Atom provide cross-border payment services to their merchants. Moreover, our customer base and development capability will allow Atom upward its growth trajectory.”
With Atom’s acquisition, the Indian payment system is inching towards consolidation. Earlier this year, Naspers-backed PayU, acquired by Mumbai-based payment service provider, bought fintech company Citrus Pay for $130 million. US-based Ebix Inc acquired Mumbai-based fintech company Itzcash for $123 million.