TCS to acquire Deutsche Bank's IT arm Postbank Systems
12 November 2020
Tata Consultancy Services (TCS) and Germany’s top lelder Deutsche Bank AG on Monday announced an agreement under which TCS will acquire 100 per cent of the shares of Postbank Systems AG (PBS) from Deutsche Bank AG.
PBS is the full-range captive IT service provider that provides project management, application management and infrastructure support services to Postbank and other subsidiaries of Deutsche Bank. PBS and its around 1,500 employees will become part of TCS, deepening the relationship between the two organisations. This will further add to TCS’ scale in Germany and strengthen its growth outlook. TCS is ranked by analysts as the fastest-growing IT service provider in Germany with a 10-year CAGR of over 24 per cent.
The transaction is subject to both parties finalising further agreements, which they intend to do by end-2020. Furthermore, the transaction is subject to customary regulatory and governmental approvals.
“We are pleased to deepen our long-standing partnership with Deutsche Bank, continue to help accelerate their digital transformation, and to acquire market specific capabilities in the banking domain,” said N G Subramaniam, chief operating officer and executive director, TCS. “We warmly welcome Postbank Systems’ IT professionals into the TCS family, and invite them to avail of the learning and development opportunities here, and help script the next chapter of TCS’ growth in Germany.”
“As part of our move to one technology organisation, we are consolidating the IT platform for our retail banking brand Postbank into the Deutsche Bank platform,” said Bernd Leukert, chief technology, data and innovation officer, Deutsche Bank. “TCS is already a trusted IT service partner for Deutsche Bank and this strengthens our relationship further. We are confident that TCS is the ideal owner for Postbank Systems. With this transaction, we agreed on a structure that meets all parties’ interests. It provides clarity to Postbank Systems staff and the opportunity to become part of the success and growth story of TCS.”
Present in Germany since 1991, TCS currently partners with over 100 leading German corporations in their growth and transformation journeys, including 17 of the DAX30. For the last seven years, TCS has been ranked #1 in customer satisfaction every year in the largest independent survey of CxOs of the top IT spending organisations in Europe, conducted by Whitelane Research. TCS is also recognised as a Top Employer in Germany by the Top Employers Institute.