Indian IT major TCS in talks to buy Deutsche Bank’s technology unit

REUTERS/Kai Pfaffenbach

Tata Consultancy Services Ltd, Asia’s biggest software exporter by market value, is in advanced talks to acquire a technology services unit of Deutsche Bank AG, people with knowledge of the matter said.

The discussions about the Bonn-based Postbank Systems AG are expected to result in a deal with the Indian company by the end of the year, the people said, asking not to be identified discussing the private information.

The pandemic is accelerating moves by global banks and financial services firms to shed their captive technology centers. Tata Consultancy’s potential takeover of Postbank’s 1,400 employees in the South Asian nation will help Deutsche Bank Chief Executive Officer Christian Sewing get closer to his job-cuts target.

Negotiations are ongoing and could still be delayed or fall apart, the people said. A Deutsche Bank spokeswoman declined to comment, while a representative for Tata Consultancy also didn’t comment.

Tata Consultancy, which has more than 450,000 employees across the world, in 2008 paid $505 million to acquire Citigroup Inc.’s back-office unit in what was then its biggest acquisition. Financial details of the proposed transaction with Deutsche Bank aren’t known.

Deutsche Bank’s Sewing last year unveiled a restructuring plan centered on cutting 18,000 jobs, with about half of those expected in Germany, Bloomberg News has reported.

PB Systems generated 533 million euros ($632 million) in revenue in 2015, according to its latest available annual report. The unit provides IT services to Deutsche Bank’s formerly separate retail unit Postbank.

Deutsche Bank is currently merging Postbank’s IT with its own, which is expected to render the services provided by PB Systems obsolete by the end of next year. The plan, known internally as Project Unity, is expected to contribute the lion’s share to Sewing’s goal of cutting 1 billion euros of expenses in the German retail operations.

Deutsche Bank also recently unveiled a plan to move much of its IT into the cloud as part of a deal with Alphabet Inc.’s Google. The bank said in July it expects to sign the contract with Google “within the next few months.”

Bloomberg

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.