TCS to acquire Postbank Systems AG from Deutsche Bank AG

India’s largest IT services provider TCS will complete the acquisition of Postbank Systems AG, a technology unit of Deutsche Bank AG, by the ned of 2020.

The transaction is subject to customary regulatory and governmental approvals.

Postbank Systems is the full-range captive IT service provider that provides project management, application management, and infrastructure support services to Postbank and other subsidiaries of Deutsche Bank. The captive has close to 1,500 employees and post the acquisition they will become a part of TCS.

“This will further add to TCS’s scale in Germany and strengthen its growth outlook,” the company said in a statement.

TCS did not disclose the value of the acquisition. In the statement to BSE, it said estimated value at a symbolic 1 euro.

According to a reports, this acquisition is a part of the Deutsche Bank AG’s CEO Christian Sewing's restructuring exercise where it is looking to cut 18,000 jobs or 20 percent of its workforce.

“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,” NG Subramaniam, Chief Operating Officer and Executive Director, TCS, said in the statement.

“As part of our move to one technology organisation, we are consolidating the IT platform for our retail banking brand Postbank into the Deutsche Bank platform,” Bernd Leukert, Chief Technology, Data and Innovation Officer, Deutsche Bank, said in the statement.

In 2008, TCS had acquired Citigroup’s captive for $512 million along with its close to 12,000 employees. Through the acquisition, the company got banking and financial services domain knowledge. It is one of the company's largest acquisition.