Tata Consultancy Services (TCS) announced Thursday that it had acquired Financial Network Services (FNS), a privately held banking software vendor in Sydney, for around US$26 million (AU$34.57 million).
TCS, based in Mumbai, is India's largest software and services company.
With the acquisition of FNS, TCS gains access to FNS's customer base, as well as its core banking software product, called BANCS. TCS can add the software to its own range of products for the banking and financial services market, S. Mahalingam, chief financial officer of TCS said on Thursday.
TCS will retain all 100 employees, including development staff, that FNS has in Sydney, Mahalingam said.
BANCS has been installed in over 115 banks spread over 35 countries, and TCS expects to sell its own banking products and services to this client base, Mahalingam said.
TCS was involved in the implementation of the BANCS software for three banks in India, including the State Bank of India, a large bank in Mumbai that is majority-owned by the Indian government. TCS has worked with this product for over four years, and is very familiar with it, which will enable the company to push it quickly into other markets, Mahalingam said.
Revenue from the banking and financial services sector for TCS was over US$700 million in the company's fiscal year to March 31, and the company has done work for clients in the banking sector in Europe, the U.S., Asia-Pacific, and Latin America, according to Mahalingam.
"The banking sector is growing fast, and with this acquisition we are better positioned for this market," Mahalingam said.