Global software major Infosys on Friday said it has completed the acquisition of majority (75 per cent) equity stake in the Stater N.V. subsidiary of the Netherlands-based ABN AMRO Bank.
"Post-acquisition for $144 million (Rs 999 crore) in cash by our arm Infosys Consulting Pte Ltd, we have formed a strategic tie-up with Stater, which provides mortgage administration services," the city-based IT behemoth said in a statement.
The Amsterdam-headquartered third largest Dutch bank, ABN, will hold the remaining 25 per cent of the shareholding in Stater.
As a market leader in the Benelux region, Stater operates across the mortgage and consumer lending value chain, with capabilities in digital origination, servicing and collection.
The 22-year-old Stater also has European mortgage expertise and a digital platform to drive superior customer experience.
"The partnership strengthens us as a leading technology and business process management provider across the mortgage services value chain, improving experience and operational efficiencies," said the statement.
Stater's expertise in the mortgage services market, combined with the global reach, Artificial Intelligence (AI), digital transformation and automation capabilities of the outsourcing firm can create differentiated solutions for the market.
"We will drive Stater's digital transformation roadmap with accelerators such as dynamic workflow, Application Programming Interface (API) layers, Robotics Process Automation (RPI) and analytics under its management team," it added.
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 transaction helps our approach to offer clients' digital platforms and industry-focused solutions. It also brings our capabilities to enhance the value we offer to our financial services clients," said Infosys President Mohali Joshi on the occasion.
"While mortgages are a key product for us, providing administrative mortgage services is not a core activity for us," said ABN executive board member Christian Bornfeld in the joint statement.
As largest mortgage service provider in the Benulux countries (Belgium, Netherlands and Luxumbourgh), Stater services a whopping 17 lakh mortgage and insurance loans for 50 clients in the Netherlands and Belgium.