Tech Mahindra signs agreement with FIS, to acquire captive unit in Asia

Tech Mahindra today announced a professional services agreement with FIS to scale its enterprise payments and banking capabilities.

The company will acquire Payments Technology Services, a subsidiary of FIS, for $9 million as part of the agreement. Based in Asia, Payments Technology Services is a payments solutions provider focused on the banking and financial services industries.

It has 109 employees and reported a turnover of $5.4million in CY19. The acquisition will give Tech Mahindra intellectual property and licences for two products, Open Payment Framework (OPF) and Multi-Bank System (MBS). It will also build a Centre of Excellence (CoE) in Chennai.


“BFSI is one of the fastest-growing industry segment for Tech Mahindra and we now have a strong presence across key regions including North America, Europe and the Asia Pacific. This move is in line with our TechMNxt charter and is aimed at strengthening our global payments capabilities, and offer clients end-to-end payments transformation services and expand this expertise to core banking and digital,” said Vivek Agarwal, Head Corporate Development & Global Head for Financial Services and Healthcare, Tech Mahindra.

This is yet another instance of a company selling its captive unit to the IT services partner as part of a larger deal, as has been seen in the last few months.

“This is in line with its strategy of pivoting the business towards product and platform implementations and participating in banking transformation programs. This acquisition will open up other opportunities for Tech Mahindra as a larger partner with FIS across a number of areas,” said Harit Shah, IT Lead Analyst, KR Choksey Shares & Securities.

This agreement would add to the company’s capabilities in the space and enable it to develop and deliver next-generation solutions to customers, said Lakshmanan Chidambaram, President, America Strategic Verticals, Tech Mahindra.

Bruce Lowthers, President Banking and Merchant Solutions, FIS, said, “FIS is constantly focused on advancing the way the world pays, banks and invests. We’re pleased this new relationship with Tech Mahindra supports that focus.”