Indian software and service provider Tata Consultancy Services (TCS) has bought Sydney banking and financial software vendor Financial Network Services (FNS) for $35 million.
Mumbai-based TCS said in a statement that FNS would strengthen the former's portfolio of banking and financial services products. FNS made a "strong, high performance" core banking offering that would appeal to banks around the world, it said.
S. Mahalingam, chief financial officer at TCS, said the company would market FNS' banking software to global banks.
"In Australia, [FNS customers] include ANZ bank and St.George Bank," he said.
He said FNS and TCS had been partners for many years. FNS in the early 1980s was starting to develop and TCS staff -- including developers -- had worked with the company.
FNS' management team would all be taken on by TCS. Several TCS executives would be coming out to Australia to oversee any changes in coming weeks, he said.
The sales team would be quickly integrated with that of TCS too, Mahalingam said.
"Product management will be based in Australia and Manila," he added.
TCS said in a statement that FNS product had already been "successfully positioned" in three major Indian banks. Also, it had been deployed in the State Bank of India.
FNS acquisition would help TCS become a "complete" reseller to the global banking sector, the company said.
S. Ramadorai, managing director at TCS, said FNS was TCS' first major international acquisition.
"It enhances the range of TCS’ asset-based solutions for the banking industry besides giving us a number of new global banking customers in Asia, Europe and South Africa," he said.
Tony Ward, founder and chief executive at FNS, said the Sydney company was "delighted" to be taken over by TCS.
FNS had "one of the best" core banking solutions on the market, Ward said.
TCS said FNS' software had been installed in about 115 banks in 35 nations. Customers included top and second-tier banks in emerging markets in Europe, Asia, Australia and Africa.
TCS posted total revenues of US$2.24 billion ($2.98 billion) for the 2004-05 fiscal year. The company is listed on the National Stock Exchange and Bombay Stock Exchange in India.
Tata buys Sydney's FNS for $35m
By Fleur Doidge on Oct 21, 2005 4:04PM