BENGALURU, India and AMSTERDAM , March 28, 2019 /PRNewswire/ -- Infosys (NYSE: INFY), a global leader in next-generation digital services and consulting, today announced a
strategic partnership with ABN AMRO, the third largest bank in the
Netherlands headquartered in Amsterdam. This partnership strengthens Infosys' position as
a leading technology and business process management provider across the mortgage services value chain, improving experience and
operational efficiencies, and further enhances the company's strategy to help clients navigate their next digital transformation
journeys.
As part of the announced partnership, Infosys will acquire 75% of the shareholding in Stater N.V., a wholly owned subsidiary
of ABN AMRO Bank N.V., that offers pure-play, end-to-end mortgage administration services in the
Netherlands, Belgium and Germany. ABN AMRO will continue to hold the remaining 25% of the shareholding.
Stater is a market leader in the Benelux region, operating across the mortgage and consumer lending value chain with deep
capabilities in digital origination, servicing and collection. Stater also brings deep European mortgage expertise and a robust
digital platform to drive superior customer experience. Infosys will drive the digital transformation roadmap of Stater with
accelerators such as dynamic workflow, API layers, RPA and analytics. The current management team of Stater will continue to
steer the company.
Mortgage services is a focus area for large corporations in the financial sector, given the importance of the asset on a
bank's balance sheet. The specialized knowledge and experience of Stater in the mortgage services market, combined with the
global reach, AI, digital transformation and automation capabilities of Infosys, can potentially create differentiated solutions
for the market.
Mohit Joshi, President, Infosys, said, "This transaction strengthens our approach
to offer clients digital platforms and industry focused solutions. It brings together our complementary capabilities to enhance
the value we offer to our financial services clients. We are excited to welcome Stater's talented team to the Infosys family,
thereby enhancing our presence in Europe."
Christian Bornfeld, Member of the Executive Board of ABN
AMRO, said, "While mortgages are a key product for ABN AMRO, providing
administrative mortgage services is not a core activity. That's why we are very pleased with Infosys as Stater's new majority
shareholder. ABN AMRO will keep a strategic interest of 25% and will continue to be an important
client to Stater."
Erwin Dreuning, Managing Director, Stater, said, "We are eager to welcome Infosys as a new shareholder. As they
are already active in mortgage administration services, Infosys offers specific expertise. With the combined forces of
ABN AMRO, Infosys and Stater ensures we have a solid basis to pursue our plans to for further
development of our service offering. Furthermore, it opens up opportunities for us to grow and service other clients."
The transaction is expected to close during the first quarter of fiscal 2020, subject to customary closing conditions.
Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
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Name(s) of parties with whom the agreement is entered
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Infosys Consulting Pte. Ltd. ("IC"), which is a wholly owned subsidiary of
Infosys Limited will be entering into an agreement with -
ABN AMRO Bank N.V., a company incorporated under the laws of the
Netherlands ("ABN AMRO"); and
Stater N.V., a company incorporated under the laws of the Netherlands
("Stater").
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Expected date of completion of investment
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The transaction is expected to close in Q1 FY2020, subject to customary
closing conditions.
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Purpose of entering into the agreement
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Founded in 1997, Stater is a wholly owned subsidiary of ABN AMRO Bank N.V.
providing end-to-end mortgage administration services in the Netherlands, Belgium and Germany.
https://stater.nl/en/
As part of the transaction, Infosys Consulting Pte. Ltd. will
acquire 75% stake in Stater from ABN AMRO by way of an acquisition of existing shares. ABN AMRO will continue to hold the
remaining 25% of the shareholding.
The strategic partnership is in alignment with Infosys' strategy to
strengthen its mortgage servicing capabilities in Continental Europe
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Consideration for the investment
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EUR 127.5 million for 75% stake, subject to customary closing
adjustments
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Nature of consideration
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Cash
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Industry to which the entity being acquired belongs
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BPM (Business Process Management)
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Brief details of any governmental or regulatory approvals required for the
acquisition
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Customary approvals from the relevant competition authority and the Dutch
Authority for the Financial Markets ("AFM")
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In case of issuance of shares to the parties, details of issue price, class
of shares issued
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No
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Shareholding, if any, in the entity with whom the agreement is
executed
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Nil
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Whether, the said parties are related to promoter/promoter group / group
companies in any manner. If yes, nature of the relationship.
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No
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Whether, the transaction would fall within related party transactions? If
yes, whether the same is done at "arms-length".
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No
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In case of termination or amendment of agreement, listed entity shall
disclose additional details to stock exchanges
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Not applicable.
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Significant terms of the agreement
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As part of the terms of the Shareholders' Agreement, Infosys to have the
rights of a majority shareholder including the right to appoint majority of the directors in the supervisory board, right
to subscribe to new shares, right of first refusal in the event of transfer of shares, right to restrict amendment of
Articles, issuance, redemption and repurchase of shares, merger, demerger, bankruptcy or Liquidation among
others.
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About Stater
Stater is the largest mortgage service provider of the Benelux. Stater services 1.7 million mortgage and insurance loans for
approximately 50 clients in The Netherlands and Belgium. Stater
was founded in 1997 and has a solid client base. Several of the largest Dutch and Belgian banks see Stater as a trusted partner
for their most important product, mortgages. Stater offers a complete range of mortgage services and is a front runner in
digital services regarding mortgages and in developing a digital ecosystem for mortgages.
About ABN AMRO
ABN AMRO is a Dutch based bank for retail, corporate and private banking clients. We are a
relationship-driven, knowledgeable and digitally savvy bank, active in Northwest Europe and with
expertise in selected sectors globally. Our purpose is Banking for better, for generations to come. Headquartered in Amsterdam, ABN AMRO employs around 19,000 people worldwide. Please visit at
www.abnamro.com
About Infosys
Infosys is a global leader in next-generation digital services and consulting. We enable clients in 45 countries to navigate
their digital transformation. With over three decades of experience in managing the systems and workings of global enterprises,
we expertly steer our clients through their digital journey. We do it by enabling the enterprise with an AI-powered core that
helps prioritize the execution of change. We also empower the business with agile digital at scale to deliver unprecedented
levels of performance and customer delight. Our always-on learning agenda drives their continuous improvement through building
and transferring digital skills, expertise, and ideas from our innovation ecosystem.
Visit http://www.infosys.com to see how Infosys (NYSE:
INFY) can help your enterprise navigate your next.
Safe Harbor
Certain statements in this release concerning our future growth prospects are forward-looking statements regarding our future
business expectations intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, which
involve a number of risks and uncertainties that could cause actual results to differ materially from those in such
forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and
uncertainties regarding fluctuations in earnings, fluctuations in foreign exchange rates, our ability to manage growth, intense
competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, restrictions on immigration, industry
segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas,
disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential
acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic
investments, withdrawal or expiration of governmental fiscal incentives, political instability and regional conflicts, legal
restrictions on raising capital or acquiring companies outside India, and unauthorized use of
our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future
operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual
Report on Form 20-F for the fiscal year ended March 31, 2018. These filings are available at
www.sec.gov. Infosys may, from time to time, make additional
written and oral forward-looking statements, including statements contained in the company's filings with the Securities and
Exchange Commission and our reports to shareholders. In addition, please note that the date of this press release is mentioned at
the beginning of the release, and any forward-looking statements contained herein are based on assumptions that we believe to be
reasonable as of this date. The company does not undertake to update any forward-looking statements that may be made from time to
time by or on behalf of the company unless it is required by law.
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SOURCE Infosys