Tata Consultancy Services (TCS) is acquiring the IT business of Deutsche Bank in a deal that will significantly boost its chances of securing lucrative service contracts in the European banking industry.
Mumbai, India-based IT consultant says it will absorb all the 2,500 employees of Postbank Systems, the subsidiary of Deutsche Bank, and take over the task of powering the European bank’s IT infrastructure.
TCS has not disclosed the financial details of the deal. Some reports say the Indian company paid just one euro for the purchase, adding that the German bank had initially decided to slash jobs at its IT unit but later chose to sell it off in order to protect jobs.
TCS has been present in Germany since the 1990s. Among its customers include 17 blue-chip firms part of Germany’s benchmark stock index DAX 30.
“As part of our move to one technology organization, we are consolidating the IT platform for our retail banking brand Postbank into the Deutsche Bank platform,” said Bernd Leukert, Chief Technology, Data, and Innovation Officer, Deutsche Bank.
Earlier this month, TCS similarly acquired the IT business of Ireland’s Prudential Financial, adding another 1,500 employees to its European workforce.
The financial services industry is the largest revenue generator for TCS, accounting for more than 30% of its total revenue.