Tata Consultancy Services Netherlands BV, and Deutsche Bank AG have entered into an agreement under which the TCS subsidiary will acquire 100% of the shares of Postbank Systems AG (PBS) from Deutsche Bank AG for a symbolic cash payment of €1, the company informed the exchanges in a regulatory filing.
PBS is the captive IT service firm that provides project management, application management and infrastructure support services to Postbank and other subsidiaries of Deutsche Bank. PBS and about 1,500 staff would become part of TCS. This will further add to TCS’ scale in Germany and strengthen its growth outlook, it said. The transaction is subject to both parties finalizing further agreements, which they intend to do by end-2020. Furthermore, the transaction is subject to customary regulatory and governmental approvals.PBS had reported a revenue of £530 million in 2019 and since significant assets of this company and pass through contracts will be sold to Deutsche Bank, its revenue for 2021 has been projected at €260 million.
“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,” said N G Subramaniam, Chief Operating Officer and Executive Director, TCS.
“We are consolidating the IT platform for our retail banking brand Postbank into the Deutsche Bank platform,” said Bernd Leukert, Chief Technology, Data and Innovation Officer, Deutsche Bank.
“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. With this transaction, we agreed on a structure that meets all parties’ interests. It provides clarity to Postbank Systems staff and the opportunity to become part of the success and growth story of TCS.”
