Mumbai: Infosys Ltd., the second biggest IT services company, on Thursday said it would buy a 75 per cent stake in ABN AMRO Group NV’s mortgage administration services unit for Rs 989 crore (127.5 million euros).
The Bengaluru-based company will acquire the stake in Stater N.V. through its consultancy arm Infosys Consulting Pvt. Ltd. and the transaction is expected to close in the first quarter of fiscal 2020.
This is in line with Infosys’ strategy to strengthen its mortgage servicing capabilities in Continental Europe, the software services company said.
ABN AMRO will continue to hold the remaining 25 per cent stake in Stater, which operates in the Netherlands, Belgium and Germany. Founded in 1997, Stater provides end-to-end mortgage administration services in the three countries.
"This transaction strengthens our approach to offer clients digital platforms and industry focused solutions,” Infosys President Mohit Joshi said.
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, said.
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.
The Infosys stock gained 1.6 per cent on the BSE....