Thursday, October 20 2005 16:52 Hrs (IST) - World Time -

Bangalore: Tata Consultancy Services has acquired Australian core banking solutions vendor Financial Network Services (FNS) for USD 26 million, in an all-cash deal that's set to strengthen its presence in the banking and financial services products space globally.

TCS' Chief Financial Officer and Head, Global Finance, S Mahalingam, told a news conference here that that Sydney-based FNS with 190 employees had revenues of Australian Dollars 29 million last year.

FNS is TCS' first major international acquisition. FNS, whose core banking solution has been installed in over 115 banks spread over 35 countries, would start contributing to TCS revenues straight away, he said. FNS' clients include Tier I and Tier II banks in emerging markets in Europe, Asia, Australia and Africa.

Commenting on the acquisition, TCS' CEO and Managing Director, S Ramadorai, said in a press statement that FNS 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".

The acquisition of FNS by TCS is expected to hot up the core banking solution space and TCS officials made no secret that the USD 2.24 billion company is now in a better position to take on the might of Infosys and Oracle-acquired i-flex in this space.

Mahalingam said with FNS, solely focused on core banking solution, in its bag now, TCS would target the market being addressed by Infosys and i-flex and 'beyond'. "It (FNS) will take on (core banking solutions of Infosys and i-flex)". TCS, with its market reach, system integration and global support capabilities, is now in a much better position to take care of core banking replacement opportunity, added TCS' Vice-President, Head, Banking Practice and Head, Bangalore Operations, N G Subramaniam.

TCS officials stressed that with its rich functionality, proven scalability and robustness, FNS' core banking solution is capable of addressing the needs of top global banks. FNS solution will form the nucleus of TCS' core banking strategy for the global market, the company said.