|L&T Infotech (LTI) said it would acquire Luxembourg based Syncordis S.A., a leading core banking implementation services provider for 15 million euros.|
LTI would acquire the firm along with its subsidiaries in France, UK, Luxembourg and India.
The mid-tier Indian IT services firm said strengths of Syncordis in Temenos, a new-age and digital core banking solution, would help them expand banking services market in the Europe.
In addition to the upfront cash consideration, 13.5 million euros may be payable over four to five years and that is contingent on the performance of the entity, said the company in a filing to the BSE.
Syncordis’ revenue stood at 12.04 million euros in 2016. The 2004 founded firm has an exclusive focus on Temenos Digital Suites and developed industry-leading accelerators that help in faster and consistent Temenos implementations.
“This (acquisition) will definitely help our penetration in banking and financial services segment and also enrich our Europe capabilities,” said Sanjay Jalona, chief executive officer and managing director, LTI. “This is a very synergistic move for us because Syncordis is one of Europe’s leading core banking implementation service providers with blue-chip clients and exclusive expertise to help with faster implementations.”
LTI, the largest amongst mid-tier Indian IT firms with nearly $1.1 billion revenue, garners 27 per cent of its business from the BFSI segment.
Jalona said he would disagree that BFSI is seeing slowdown for IT services firms.
“A lot of banks are looking at revamping of their core banking platform to make it more digital and have the ability to launch products quickly. A lot of re-platforming is going on in the retail banking space and the platform which is one of the fastest growing in this is Temenos,” added Jalona.
The leadership team of Syncordis will continue to be part of the acquired entity.
Jalona said the company would be keen to look at future acquisitions to add capabilities in five key areas - Analytics, Digital, IoT, Automation and Cloud.