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Toronto-based DH Corporation, financial technology provider has recently acquired Fundtech, provider of payment solutions to bank for US$1.25 billion. The development is going to have significant impact on its India operations. This acquisition will help to ramp up its head count from current 900 to 1400 people by end of this year.
Fundtech has a R & D centre in Pune with 600 employees while DH has set up its technology centre in Chennai with the total head count of 300 people. Fundtech has presence in the Americas, Europe, Middle East and Africa and APAC Region with 1500 employees. Fundtech India’s clients include HDFC, OBC, Andra Bank, ABN Amro, HSBC, Yes Bank, Barclays, IDBI.
"The research and development centre of Fundtech in Pune with 600 employees and DH Corporation’s research centre in Chennai employing 300 staff would be scaled up to 1,400-1,500 staff by the end of calendar year 2015. All the 5,500 staff of the Fundtech have been retained by DH Corporation," said Sanjay Dalmia, CEO at Fundtech India
He added, “Bank payments is growing 25-30 per cent in India which needed to be handled with safe and secure technology solutions. Fundtech as a brand would co-exist along with DH Corporation as they were complementary to each other to tap banks for growth with their respective technology solutions.”
“The all-cash acquisition of Fundtech for $1.25 billion solidifies DH Corporation’s position as a leading global financial technology provider with a strategic expansion into global payments. Fundtech’s cash management and payment product portfolio range would complement DH Corporation’s core banking and lending technology solutions to tap the banks globally to fuel growth,” Gerrard Schmid, CEO at DH Corporation said.
DH now serves nearly 8,000 clients 300 US banks and 50 global banks. Fundtech grossed a total of $260 million in revenues in calendar year 2014, clocking 9 per cent growth. According to Schmid, Fundtech would also provide with a market-leading software platform with established scale in mission-critical payments technology.
