Tata Consultancy Services announces the acquisition of Deutsche Bank’s Postbank system
Tata Consultancy Services on Monday announces that it has agreed to acquire the technology services unit of Deutsche Bank for one euro. The agreement says that TCS will obtain 100 per cent of the shares of the Postbank System AG (PBS) from Deutsche Bank AG and its 15,00 employees will become part of TCS and will help Tata Consultancy Services to enlarge its presence in the region.
The Postbank System (PBS) is the full-range captive Information Technology (IT) service provider that, however, offers project management, infrastructure support services to Postbank and application management and other subsidiaries of Deutsche Bank.
Moreover, the progress will save about 9 per cent of the 18, 000 jobs placed in jeopardy by the German giant’s decision to restructure operations and restore profitability.
Meanwhile, Deutsche Bank is already a customer of Tata Consultancy Services and the purchase will add to the Indian conglomerate’s scale in Germany and build-up its blooming outlook. However, TCS provides services to more than 100 corporations there.
Besides, the Postbank Systems revenue will be over 250 million euros in 2021 as the TCS says the transaction is subject to the approval of the European Commission Merger Control and it requires the nod of the German government’s FDI as the target business operates fundamental infrastructure such as retail banking together with ATM networks there.
In an announcement, Deutsche Bank said that this transaction provides clarity to Postbank Systems staff and allows them to become part of the success and growth story of TCS. However, the German Multinational Investment bank and financial services company ‘Deutsche Bank’ will take a hit of 120 million euros as part of the transaction and the TCS with revenue of $22 billion and employees of 4,53 lakh, will route the Postbank System acquisition via its Netherlands subsidiary.