Tata Consultancy Services is acquiring Deutsche Bank's IT services business unit, known as Postbank Systems AG. A deal is expected to be finalized by the end of 2020, the companies said today.
This is M&A deal 454 that ChannelE2E has covered so far in 2020. See the full M&A deal list here.
The price tag on the deal is a symbolical euro but it’s still beneficial for Deutsche Bank because it can save on future redundancy costs and it also offers a long-term job perspective to PB Systems staff, Bloomberg reports.
Postbank Systems has roughly 1,500 employees in Germany.
TCS: Financial IT Services Acquisitions
In a prepared statement about the deal, TCS Chief Operating Officer NG Subramaniam said:
“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."
Tata Consultancy has experience acquiring IT services business units from banks and financial services firms. The company previously acquired Citigroup's back office unit in 2008, Bloomberg notes.
Also, TCS acquired BridgePoint Group, a management consulting firm supporting the financial services and retirement services vertical, in 2018.
