Indian IT services giant Infosys has acquired a 75% majority stake in Dutch bank ABN AMRO’s subsidiary Stater for an estimated price of €127.5m.
Image: Infosys to acquire ABN AMRO’s subsidiary. Photo: Courtesy of ABN AMRO Bank N.V.
The acquisition will strengthen Infosys’ position in offering mortgage services value chain across and will improve experience, operational efficiencies and can further enhance its strategy in supporting its clients.
Stater offers pure-play, end-to-end mortgage administration services in the Netherlands, Belgium and Germany. ABN AMRO will continue to own the 25% stake in Stater.
Stater offers mortgage and consumer lending value chain with deep capabilities in digital origination, servicing and collection services. The company also has deep expertise in European mortgage market and is supported by a strong digital platform to offer superior customer experience.
The company services over 1.3 million mortgage loans to more than 30 mortgage providers in the Dutch market.
Infosys is known as an IT and business services provider, operating worldwide and active in providing administrative mortgage services across several countries.
Infosys will strengthen Stater’s digital transformation roadmap with accelarators such as workflow, API layers, RPA and analytics. The present management of Stater will continue to lead the company.
Infosys president Mohit Joshi said” “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 to our financial services clients. We are excited to welcome Stater’s talented team to the Infosys family, thereby enhancing our presence in Europe.”
Mortgage services is claimed to be a focus area for large businesses in the financial sector, with an importance of being attached as an asset on a bank’s balance sheet. The specialized knowledge and expertise in mortgage services market of Stater, combined with the global reach, artificial intelligence, digital transformation and automation capabilities of Infosys, is expected to create customized solutions for the market.
ABN AMRO executive board member Christian Bornfeld said: “While mortgages are a key product for ABN AMRO, providing administrative mortgage services is not a core activity. That’s why we are very pleased with Infosys as Stater’s new majority shareholder. ABN AMRO will keep a strategic interest of 25% and will continue to be an important client to Stater.”
The transaction is expected to be closed in the first quarter of fiscal 2020, subject customary closing conditions such regulatory approvals.