Strengthens mortgage servicing capabilities through digital platforms
BENGALURU, India and AMSTERDAM, March 28, 2019 /PRNewswire/ -- Infosys [http://www.infosys.com/] , a global leader in next-generation digital services and consulting, today announced a strategic partnership with ABN AMRO, the third largest bank in the Netherlands headquartered in Amsterdam. This partnership strengthens Infosys' position as a leading technology and business process management provider across the mortgage services value chain, improving experience and operational efficiencies, and further enhances the company's strategy to help clients navigate their next digital transformation journeys.
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As part of the announced partnership, Infosys will acquire 75% of the shareholding in Stater N.V., a wholly owned subsidiary of ABN AMRO Bank N.V., that offers pure-play, end-to-end mortgage administration services in the Netherlands, Belgium and Germany. ABN AMRO will continue to hold the remaining 25% of the shareholding.
Stater is a market leader in the Benelux region, operating across the mortgage and consumer lending value chain with deep capabilities in digital origination, servicing and collection. Stater also brings deep European mortgage expertise and a robust digital platform to drive superior customer experience. Infosys will drive the digital transformation roadmap of Stater with accelerators such as dynamic workflow, API layers, RPA and analytics. The current management team of Stater will continue to steer the company.
Mortgage services is a focus area for large corporations in the financial sector, given the importance of the asset on a bank's balance sheet. The specialized knowledge and experience of Stater in the mortgage services market, combined with the global reach, AI, digital transformation and automation capabilities of Infosys, can potentially create differentiated solutions for the market.
Mohit Joshi, President, Infosys, 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."
Christian Bornfeld, Member of the Executive Board of ABN AMRO, 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."
Erwin Dreuning, Managing Director, Stater, said, "We are eager to welcome Infosys as a new shareholder. As they are already active in mortgage administration services, Infosys offers specific expertise. With the combined forces of ABN AMRO, Infosys and Stater ensures we have a solid basis to pursue our plans to for further development of our service offering. Furthermore, it opens up opportunities for us to grow and service other clients."
The transaction is expected to close during the first quarter of fiscal 2020, subject to customary closing conditions.
Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Name(s) of Infosys Consulting Pte. Ltd. ("IC"), which is a parties with wholly owned subsidiary of Infosys Limited whom the will be entering into an agreement with - agreement is entered ABN AMRO Bank N.V., a company incorporated under the laws of the Netherlands ("ABN AMRO"); and Stater N.V., a company incorporated under the laws of the Netherlands ("Stater"). --- Expected date The transaction is expected to close in Q1 of completion FY2020, subject to customary closing of investment conditions. --- Purpose of Founded in 1997, Stater is a wholly owned entering into subsidiary of ABN AMRO Bank N.V. providing the agreement end-to-end mortgage administration services in the Netherlands, Belgium and Germany. https://stater.nl/en/ As part of the transaction, Infosys Consulting Pte. Ltd. will acquire 75% stake in Stater from ABN AMRO by way of an acquisition of existing shares. ABN AMRO will continue to hold the remaining 25% of the shareholding. The strategic partnership is in alignment with Infosys' strategy to strengthen its mortgage servicing capabilities in Continental Europe --- Consideration EUR 127.5 million for 75% stake, subject to for the customary closing adjustments investment --- Nature of consideration Cash --- Industry to which the entity being acquired belongs BPM (Business Process Management) --- Brief details Customary approvals from the relevant of any competition authority and the Dutch Authority governmental for the Financial Markets ("AFM") or regulatory approvals required for the acquisition --- In case of issuance of shares to the parties, details of issue price, class of shares issued No --- Shareholding, if any, in the entity with whom the agreement is executed Nil --- Whether, the No said parties relationship. are related to promoter/ promoter group / group companies in any manner. If yes, nature of the --- Whether, the transaction would fall within related party transactions? If yes, whether the same is done at "arms- length". No --- In case of termination or amendment of agreement, listed entity shall disclose additional details to stock exchanges Not applicable. --- Significant As part of the terms of the Shareholders' terms of the Agreement, Infosys to have the rights of a agreement majority shareholder including the right to appoint majority of the directors in the supervisory board, right to subscribe to new shares, right of first refusal in the event of transfer of shares, right to restrict amendment of Articles, issuance, redemption and repurchase of shares, merger, demerger, bankruptcy or Liquidation among others. ---
About Stater
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