The Hindu : Business : TCS buys Australian banking software firm

Online edition of India's National Newspaper
Friday, Oct 21, 2005

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TCS buys Australian banking software firm

Special Correspondent

The $26 million acquisition will help TCS expand global presence

Scope to provide end-to-end solutions with a global footprint FNS solution to form the nucleus of TCS' core banking strategy

BANGALORE: Tata Consultancy Services (TCS) has acquired Australian banking software solutions firm Financial Network Services (FNS) in an all-cash deal worth $26 million.

The acquisition of the Sydney-based company, the first major overseas purchase of TCS, will help the latter expand its presence and become a complete solutions provider for the global banking and financial services industry besides adding a number of new global banking customers into its growing kitty.

Out of the $2.2 billion revenues TCS earned last fiscal ending March 2005, the banking and financial solutions business contributed $750 million. FNS, which reported revenues of 29 million Australian dollars last year, would contribute to the revenues of TCS straightway, S. Mahalingam, Chief Financial Officer and Head (Global Finance), TCS said.

Announcing the deal here on Thursday, Mr. Mahalingam said the core banking solution of FNS had been deployed in 115 Tier-I and Tier-II banks in 35 countries. In India, FNS has been deployed by TCS for providing core banking solution to State Bank of India and had also been deployed by Central Bank of India and Indian Bank.

"The FNS deal is great value as well as strategic in nature," S. Ramadorai, CEO and Managing Director, TCS, said.

In September, TCS had bagged a five-year 200-million euro ($260 million) technology outsourcing deal from Dutch banking major ABN Amro.

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