TCS acquires FNS for US$26m

Stan Beer
Friday, 21 October 2005 10:00

IT Industry - Strategy

Indian outosurcing multinational, Tata Consultancy Services, has acquired Sydney-based core banking solutions vendor, Financial Network Services (FNS), for approximately US$26 million in a bid to tackle the global banking market.

According to TCS, the acquisition of FNS will strengthen the global IT service provider's portfolio of banking and financial services products by adding a strong, high-performance core banking solution with an established global customer-base.

Having successfully positioned the FNS solution in 3 of India's major banks as well as having successfully customized and implemented it at the State Bank of India in what is claimed to be the world's largest core banking implementation, the core banking solution is expected to enhance TCS' ability to win further business from the world's top banks and financial institutions.

Commenting on the acquisition, S. Ramadorai, CEO and managing director of TCS said, 'FNS, TCS' first major international acquisition is great value as well as strategic in nature.It will add great value to the company as 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."

'This is a robust, well-established product and TCS is confident of being able to implement this solution in any bank in any part of the world,' said N. Chandrasekaran, Global Head of Sales and Operations. 'With this acquisition, TCS will compete aggressively in the core banking enhancement and replacement market by leveraging its unique capabilities developed on complex banking projects in major global financial markets.'

Tony Ward, founder and CEO of FNS said, 'We are absolutely delighted to be joining the TCS group. With one of the best core banking solutions on the market and a great organisation to support it, we, at FNS are really excited by the huge opportunities that lay ahead.'

FNS' core banking solution has been installed in over 115 banks spread over 35 countries and its clients include Tier I and Tier II banks in emerging markets in Europe, Asia, Australia and Africa.