Tech Mahindra, which is one of the leading IT service providers of the country, is planning to acquire Payments Technology Services Ltd (PTSL), which is a subsidiary of fintech firm FIS. The said transaction is expected to close by March 31, 2021 for USD 9 million (about Rs 66 crore).
PTSL is a payments solutions provider with focus on banking and financial Services (BFS). Tech Mahindra has signed a professional services agreement with FIS to enhance its enterprise payments and banking capabilities. Tech Mahindra will also build a state-of-the-art Centre of Excellence (CoE) in Chennai, India to support banking, financial and insurance services.
One major advantage of this acquisition is that it will give Tech Mahindra access to IPs and licenses for two products namely Open Payment Framework (OPF) and Multi-Bank System (MBS). These new capabilities of Tech Mahindra in payment market would be useful for them towards product and platform implementations and participating in the banking transformation programmes.
Basically, the main aim of this acquisition is to smoothen and facilitate the payment efficiencies across the globe and also offer end-to end payment transformation services and to have better expertise in banking and digital services. This acquisition will open up other opportunities for Tech Mahindra as a larger partner with FIS across a number of areas as well.