The Hindu : Business : eFunds buys India Switch's ATM business

Online edition of India's National Newspaper
Wednesday, Apr 06, 2005

Business

Business

eFunds buys India Switch's ATM business

By Our Staff Correspondent

CHENNAI, APRIL 5. eFunds International India, a subsidiary of the U.S.- based $550 million eFunds Corporation, has acquired business interests of India Switch Company (ISC) from the Chennai-based HMA.

EFunds will acquire the current ATM managed services and payments processing interests of India Switch Company from HMA, a privately held company providing end-to-end solutions for debit services to the Indian retail banking sector.

It may be recalled that the India Switch Company (ISC) was managing the Indian Banks Association's (IBA) `Swadhan' shared ATM network, which had 45 member banks.

The acquisition will include the transfer of ISC services such as TRIMS (Total Retail Infrastructure Management Services), which provide complete outsourced ATM deployment and management services to banks in about 20 Indian cities as well as two shared interchange networks, CashTree and BANCS.

These services, after takeover would operate on eFunds' IST payments software.

Atul Kunwar, Managing Director, eFunds International India, told The Hindu that the initial cash purchase price was $17.5 million, subject to working capital adjustments and holdback arrangements.

Stating the reason for getting out of the business, the Chairman of HMA, Harish Murthy, said that he wanted to re-enter into the business of selling ATMs. He hoped that as a recognised market leader in ATM management and electronic payments, eFunds would improve the business.

Printer friendly page
Send this article to Friends by E-Mail

Business