Bandhan Financial Services Ltd (BFSL), the promoter of Bandhan Bank, has acquired global information technology and business process services provider Genisys group of companies, which has its origin in London.
This marks Bandhan Group’s strategic foray into the IT sector. It completed the acquisition just ahead of Diwali paying nearly Rs 100 crore in an all-cash deal, two people familiar with the matter said.
“The entry into the technology sector is in confirmation with the applicable guidelines for core investment companies, which are allowed to invest in non-financial sectors,” BFSL managing director Arvind Agrawal told ET.
“Bandhan Financial Services had surplus cash, which has been deployed to acquire the tech services group with an aim to enhance shareholders’ value. Technology is something which integrates everything together. The potential for IT-driven solutions to address business challenges, especially in the banking and financial services sector, is enormous, and we anticipate significant growth in this area.” Agrawal said
The IT services group had three separate companies under it — Genisys Software Ltd (UK), Genisys Software Ltd (US) and Genisys Information Systems India Pvt Ltd.
BFSL acquired all three separately and has now brought them under one entity — Genisys Information Systems India Pvt Ltd, which is located in Bengaluru and will become the head office. The London and New York units will be turned into subsidiaries of it.
The IT group provides AI-enabled solutions to banking and financial services companies as well as to sectors like healthcare, manufacturing, retail & e-commerce, travel & hospitality, media, marketing & advertising.
“With the support of the Bandhan Group, we can now expand extensively and build new capabilities, particularly in AI-driven solutions,” Genisys group chief executive Satish Subramaniam said.
This is the third acquisition by BFSL but the first one in the non-financial sector. In the previous two years, it acquired IDFC Asset Management Company and Aegon Life Insurance respectively to broaden its interest in the financial services space.
Incidentally, the latest acquisition got completed after Bandhan group founder Chandra Shekhar Ghosh was back in the fray as the chairman of BFSL about a month back. He retired from Bandhan Bank as managing director on July 9, this year.
RBI regulation says that core investment companies would require prior approval from it for investing in the financial sector while there is no such rule for investment in the non-financial sector. The investment in the non-financial sector only needs to be reported to the regulator within a month of making it.
Source: Economic Times