Asia’s Biggest software exporter by market value and the largest IT service provider in India, TCS is now in talking terms to acquire a technology service unit of Deutsche Bank AG.
According to the sources the discussion is in an advanced stage and it would be a complete takeover of the business and 1400 employees of Postbank Systems, the IT services unit of the retail banking division of Deutsche Bank. The expected deal size is still not clear.
The pandemic is accelerating moves by global banks and financial services firms to shed their captive technology centers. Tata Consultancy’s potential takeover of Postbank’s 1,400 employees in the South Asian nation will help Deutsche Bank Chief Executive Officer Christian Sewing get closer to his job-cuts target.
Tata Consultancy which currently has more than 450,000 employees worldwide, in 2008 paid $505 million to acquire Citigroup Inc.’s back-office unit in what was then its biggest acquisition. Financial details of the proposed transaction with Deutsche Bank aren’t known.
Shares of the unit of Tata Sons Pvt., India’s biggest conglomerate, were little changed at ₹2,673.8 at 9:35 a.m. in Mumbai.
Deutsche Bank’s Sewing last year unveiled a restructuring plan centered on cutting 18,000 jobs, with about half of those expected in Germany, Bloomberg News has reported.
Deutsche Bank is currently merging Postbank’s IT with its own, which is expected to render the services provided by PB Systems obsolete by the end of next year. The plan, known internally as Project Unity, is expected to contribute the lion’s share to Sewing’s goal of cutting 1 billion euros of expenses in the German retail operations.
Deutsche Bank also recently unveiled a plan to move much of its IT into the cloud as part of a deal with Alphabet Inc.’s Google. The bank said in July it expects to sign the contract with Google “within the next few months.”