Infosys completes majority purchase of ABN AMRO mortgage subsidiary Stater

29 May 2019 4 min. read
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The Singapore arm of Indian IT services and consulting giant Infosys has picked up a $144 million majority stake in ABN AMRO subsidiary Stater N.V.

The Singapore arm of Indian IT services and consulting giant Infosys has formed a strategic partnership with Dutch bank ABN AMRO through the $144 million purchase of a three quarters equity stake in ABN AMRO subsidiary Stater N.V. – and end-to-end mortgage service provider with a leading market position in the Benelux region (Netherlands, Belgium and Luxembourg).

Established in 1997, Stater according to firm services 1.7 million mortgage and insurance loans for approximately 50 clients in the region, including several of the largest Dutch and Belgian banks. Previously wholly-owned by ABN AMRO – the Netherlands’ third largest bank – Stater provides a complete range of mortgage services and has developed deep capabilities in the digital domain.

“The specialised 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,” Infosys said in a press statement. “This partnership strengthens Infosys’ position as a leading technology and business process management provider across the mortgage services value chain.”Infosys completes majority purchase of ABM AMRO mortgage subsidiary StaterWith the now completed deal first announced in March, the 75 percent equity sale to Infosys will see the ABN continue to hold the remaining 25 percent, establishing a strategic partnership between the two entities. “While mortgages are a key product for ABN AMRO, providing administrative mortgage services is not a core activity,” said Executive Board member Christian Bornfeld. “That’s why we are very pleased with Infosys as Stater’s new majority shareholder.”

“As they are already active in mortgage administration services, Infosys offers specific expertise,” continued Erwin Dreuning, Managing Director of Stater. “The combined forces of ABN AMRO, Infosys and Stater ensures we have a solid basis to pursue our plans for further development of our service offering. Furthermore, it opens up opportunities for us to grow and service other clients.”

Infosys has yet to state its immediate intentions for Stater – if or when it plans to bring the product direct to the Singaporean or other markets of Asia – but the deal follows an earlier joint venture established toward the end of last year with the Singaporean state-investment fund Temasek – indicating an ongoing concerted local push. Infosys has also been stepping up its presence in Japan through another recent joint venture with local firms Hitachi and Panasonic.

At the global level, Infosys has steadied after a period of leadership instability and charted a fresh course toward digital horizons – having over the past year also purchased European Salesforce cloud consultancy Fluido (for $76 million) along with US digital advertising agency Wongdoody, while also recruiting former McKinsey & Company partner John Gikopoulos to head up its global automation and artificial intelligence consulting division.