On November 9, 2020 Tata Consultancy Services (TCS) signed an agreement with Deutsche Bank AG, under which TCS will acquire a 100% of the shares of Postbank Systems AG(PBS) from Deutsche Bank AG. The value of the deal was not disclosed.
- PBS is the IT(Information and Technology) service provider of Deutsche Bank
- Deutsche Bank is an existing IT services partner of TCS.
Highlights of the Transaction
i.Both the parties intend to finalize the further agreements in relation to the transaction by end of 2020.
ii.The Transaction is subject to customary regulatory and governmental approvals.
Postbank Systems and its about 1,500 employees will become part of TCS.
iii.The bank had set 2022 as the deadline for the technology migration of Postbank’s systems.
Benefits of Acquisition:
i.The sale of Postbank Systems AG to TCS is a vital step to the strategic transformation of Deutsche Bank.
ii.The relationship of the two organizations will deepen as PNS and its employees become a part of TCS.
iii.It is to be noted TCS has been present in Germany since 1991, and currently has partnerships with over 100 German corporations.
iv.This acquisition contributes to the continued growth of TCS in Germany and in the Financial Services Industry. It also strengthens its growth outlook.
About Postbank Systems AG
PBS provides IT services including, project management, application management and infrastructure support services to Postbank, the retail banking division of the Deutsche Bank
i.TCS is ranked as the fastest growing IT service provider in Germany, with a 10-year CAGR(Compound Annual Growth Rate) of more than 24%
ii.It has been ranked as No 1 in customer satisfaction for the last 7 years in the largest European-wide survey of service provider performance, conducted by Whitelane Research.
iii.The Top Employers Institute recognises TCS as a Top Employer in Germany
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About Deutsche Bank:
Headquarters– Frankfurt, Germany
Chief Executive Officer(CEO)– Christian Sewing
President– Karl von Rohr
About Tata Consultancy Services (TCS):
CEO & MD(Managing Director)– Rajesh Gopinathan(Non-Independent, Executive)
Chairman of the Board of Tata Sons– N. Chandrasekaran(Non-Independent, Non-Executive)
Headquarters– Mumbai, Maharashtra
Launched– April 1, 1968 as a division of Tata Sons