Infosys to pay 127.5M euros for 75% stake in European mortgage administration firm

Infosys said it would pay 127.5 million euros to buy a 75% stake in Netherland-based ABN AMRO Bank’s mortgage service provider, as it continues to expand in continental Europe.

Stater, the mortgage service unit, has about 50 clients in the Netherlands and Belgium and services about 1.7 million mortgage and insurance loans.

ABN AMRO will hold the remaining 25% of the company, Infosys said in a filing with the Bombay Stock Exchange.

“This transaction strengthens our approach to offer clients digital platforms and industry-focused solutions. We are excited to welcome Stater’s talented team to the Infosys family, thereby enhancing our presence in Europe,” Mohit Joshi, President at Infosys, said in a statement.

The current management at Stater will continue to steer the company, Infosys added.

“We are eager to welcome Infosys as a new shareholder. As they are already active in mortgage administration services, Infosys offers specific expertise. Furthermore, it opens up opportunities for us to grow and service other clients,” Erwin Dreuning, Managing Director, Stater, said. The transaction is expected to close in the first quarter of FY2020.