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HCL Tech and apoBank to acquire German IT consulting firm gbs for 99k euros

The transaction, worth 99,000 euros, is expected to close in January 2022, subject to closing conditions

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HCL Technologies | HCL Tech | Germany

Neha Alawadhi  |  New Delhi 

HCL

(HCL), a leading global technology company, and Deutsche Apotheker- und Ärztebank eG (apoBank), the largest cooperative primary bank in Germany, have signed with Atruvia AG an agreement to acquire IT consulting company Gesellschaft für Banksysteme GmbH (gbs), the Indian information technology firm said Wednesday.

The transaction, worth 99,000 euros, is expected to close in January 2022, subject to closing conditions, including regulatory approvals.

Post-closing, HCL will own 51 per cent, while apoBank will own 49 per cent stake of gbs. apoBank is currently a 10 per cent shareholder in gbs.

The all-cash transaction will require a merger clearance approval from German Federal Cartel Office.

This strategic acquisition will add an edge to HCL’s existing capabilities to accelerate digital transformation and further enhance HCL’s scale in

The acquisition will provide HCL access to German co-operative banking sector which has nearly 30 per cent retail funds under management in Germany, help it augment local financial services IT expertise, the firm said in a regulatory filing on the BSE.

This collaboration is in line with HCL’s investments in a local delivery model supported by a highly skilled German workforce.

is one of the largest economies in Europe and is, therefore, a strategic region for HCL,” said Sudip Lahiri, Senior Vice President and Head of Financial Services, Europe,

In October, at the time of announcing its quarterly results, HCL CEO C Vijayakumar had told Business Standard that the company wasn't looking at "big bang acquisitions" like the IBM assets it acquired in December 2018 for $1.8 billion.

"Today, there is so much momentum in the organic business, I think we are better off as a strategy to focus and execute to the demand that the market is presenting to us. Rather than looking at any major acquisitions, we can always have small tuck ins, to expand in a geography or in a capability area," Vijayakumar had said.

has eight offices in Germany, including its regional headquarters in Eschborn. It has more than 1,800 employees in the geography, serving 18 of DAX 40

Johannes Kermer, Divisional Board Member for IT and Operations at apoBank said, "HCL’s innovative delivery models and financial services expertise, along with gbs’ knowledge of the cooperative banking sector, local IT and regulatory requirements is a winning combination. HCL is already a trusted apoBank IT services partner and this strengthens our relationship further.”

“We are confident HCL and apoBank are the ideal owners of gbs,” said Martin Beyer, Board Spokesman and Head of Corporate Development, Atruvia. “gbs will continue to be part of the IT ecosystem to service the cooperative banking sector and will support and collaborate with Atruvia to service our joint clients.”

HCL’s state-of-the-art banking innovation center in Eschborn and an upcoming fintech lab in Berlin offer technology expertise to organizations globally.

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First Published: Wed, December 08 2021. 20:21 IST
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