HCL Technologies along with apoBank acquires German IT consulting company gbs

HCL will own 51%, while apoBank will own a 49% stake in Gesellschaft für Banksysteme GmbH (gbs).

In its regulatory filing the IT major stated that HCL Technologies (HCL) and Deutsche Apotheker- und Ärztebank eG (apoBank), the largest cooperative primary bank in Germany, have signed with Atruvia AG an agreement to acquire IT consulting company Gesellschaft für Banksysteme GmbH (gbs).

Subject to regulatory approvals the transaction is expected to close in January 2022. Post-closing HCL will own 51%, while apoBank will own a 49% stake in gbs. apoBank is currently a 10% shareholder and is increasing its stake in gbs from 10% to 49% with a total purchase price of EUR 99,000.

HCL which is already an IT service partner of apo Bank, with gbs’ acquisition expects to further strengthen its presence in Germany by driving digital transformation and innovation in the financial service sector in Germany.

“HCL and apoBank will leverage gbs’ in-depth knowledge of the cooperative banking sector and regulatory expertise to offer next-generation services to its clients. This collaboration is in line with HCL’s investments in a local delivery model supported by a highly-skilled German workforce,” stated HCL in its filing.

The acquirers- HCL Technologies is a leading global IT services company. HCL offers an integrated portfolio of products and services through three business units. These are IT and Business Services (ITBS), Engineering and R&D Services (ERS), and Products and Platforms (P&P). Deutsche Apotheker- und Ärztebank eG (apoBank) is the largest cooperative primary bank and number one among financial service providers in the healthcare sector.

Customers are members of the health professions, their professional associations, health care institutions and companies in the health market.

The target company Gesellschaft für Banksysteme GmbH ( gbs’) offers services including IT Transformation; IT Migration; System Integration and Development; Application Management and Consulting.

 The objectives of the acquisition are to get access to the German Co-operative banking sector which has 30% retail funds under management in Germany while enhancing local financial services IT expertise strengthening the presence of HCL and apoBank in Germany.

The shares of HCL Technologies are trading at Rs 1163.90 at 12.55 pm.