IT chief Tech Mahindra said on Tuesday that it will acquire Payments Technology Services Ltd (PTSL), a subsidiary of fintech FIS, for US $ 9 million (approximately Rs. 66 crore).

A regulatory filing said the acquisition will give Tech Mahindra access to IP addresses and licenses for two products: Open Payment Framework (OPF) and Multi-Bank System (MBS).

"The payment capabilities acquired will give us access to IP addresses and producer licenses, which aligns with our strategy of directing companies towards product applications and platforms and participating in banking transformation programs," added Tech Mahindra.

This acquisition will open other opportunities for Tech Mahindra as a larger partner with FIS in various areas, he said. He added that the cost of the acquisition is $ 9 million and the deal is expected to end on March 31, 2021.

 Founded in March 2007, PTSL is a payment solutions provider with a focus on Banking and Financial Services (BFS). The company is based in Hong Kong and employs approximately 109 employees. Its sales volume for the fiscal year ended December 31, 2019 was $ 5.4 million.

 In a statement, Tech Mahindra said it has signed a professional services agreement with FIS to expand institutional payments and banking capabilities.

 "This agreement aligns with Tech Mahindra's strategy to expand the influence of BFSI (banking, financial and insurance services) globally. In support of this strategy, Tech Mahindra will also build the latest Center of Excellence (CoE) in Chennai. . India".

Vivek Agarwal, Head of Corporate Development and Global Head of Health and Financial Services at Tech Mahindra, said that BFSI is one of Tech Mahindra's fastest growing industry sectors, and the company now has a strong presence in key regions such as the Americas. North, Europe and Asia Pacific.

He added: "This step is in line with our TechMNxt charter and aims to enhance our global payment capabilities, provide comprehensive payment transfer services to customers, and expand this expertise to include basic and digital banking services."

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