Indian software services and consultancy firm Infosys is set to acquire a 75% stake for Rs 986 crore or 127.5 million Euros ($143 million) in Stater NV, the mortgage service provider of Dutch bank ABN AMRO, the company said in a media statement.
The statement added that ABN AMRO will continue to hold the remaining 25% stake.
This will be Infosys’s third-largest deal after the acquisitions of Lodestone in 2012 and Panaya in 2015.
The Bengaluru-based $10-billion IT firm has also partnered with Amsterdam-based ABN AMRO to provide digital banking services for the latter’s customers. The statement added that the benefits include digitizing the mortgage business, improving customer experience, and bringing operational efficiencies, in addition to other digital transformation initiatives.
According to the company, Stater is a market leader in the Benelux region (Belgium, Netherlands, and Luxembourg). It operates across the mortgage and consumer lending value chain with profound digital origination, servicing, and collection capabilities. The existing management will continue to govern the company.
“This transaction strengthens our approach to offer clients digital platforms and industry-focused solutions. It brings together our complementary capabilities to enhance the value we offer our financial services clients and our presence in Europe,” said Mohit Joshi, president of Infosys.
The deal will provide Infosys with deep expertise in the European mortgage business and a robust digital platform to drive superior customer experience for its potential clients. The Bengaluru-based company will also help Stater with a digital transformation roadmap with accelerators such as dynamic workflow, application programming interface (API) layers, robotic process automation (RPA), and analytics.
“Infosys is already active in mortgage administration services, so they offer specific expertise. With the combined forces of ABN AMRO, Infosys, and Stater, we will ensure a solid basis to pursue our plans for the further development of our service offering,” said Erwin Breuning, managing director of Stater, adding that this will open up opportunities for the company to grow and service more clients.
Infosys said that mortgage services are a focus area for large corporations in the financial sector because of their importance as an asset on a bank’s balance sheet. Stater’s specialized knowledge and experience in the mortgage services market, combined with its global reach and Infosys’s AI, digital transformation, and automation capabilities, can potentially create differentiated solutions for the market, it said in the statement.
“While mortgages are a key product for ABN AMRO, providing administrative mortgage services is not a core activity, and hence, we have decided to bring Infosys on board. We will keep a strategic interest of 25% and will continue to be an important client to Stater,” said Christian Bornfeld, a member of the executive board of ABN AMRO.
