Mumbai-based enterprise security company Aurionpro Solutions Ltd on Wednesday said it will acquire a 51% stake in Singapore-based banking technology firm Neo.Bnk Pte Ltd for $1.5 million (Rs 10 crore).
The acquisition is in line with the company’s strategy of integrating and scaling up its product suite to a next-generation platform, said Aurionpro in a stock market disclosure.
The acquisition, which will be done through its wholly-owned subsidiary Aurionpro Solutions Pte Ltd, is expected to be concluded by the end of this month.
Neo.Bnk was founded in April 2018 by Amit Sethi, who has over 20 years of experience in the banking sector. The company allows banks to overcome challenges faced with new technology adoption, rapid IT transformation and agile delivery.
It offers a single open banking platform which helps banks form an ecosystem with fin-tech companies and other partners to harness new business models. The main driver for open banking is the sharing economy, which is estimated to become a $20-billlion opportunity in the next five years, the company said.
“Neo.Bnk will allow Aurionpro to offer a next-generation platform to its customers based in over 25 countries. It will also help evolve Aurionpro's loan, transaction banking and ACE platform into a next-generation digital banking platform," said Amit Sheth, co-chairman, Aurionpro.
Aurionpro helps enterprises accelerate their digital innovation, securely and efficiently. The company operates three primary business lines – cybersecurity, digital innovation and banking industry solutions. It employs over 1,200 domain and technology experts across North America, Asia and Europe.
The company’s revenue dropped to Rs 424.23 crore in the financial year ended 31 March 2018 as compared with Rs 502.36 crore in the year prior as it was engaged in restructuring its businesses. Its net profit was Rs 37.89 crore during the period as compared to Rs 36.08 crore in the previous year.
Aurionpro has taken the inorganic route in the past as well to grow its business. In 2016, it had acquired Silicon Valley-based startup Spikes Security for an undisclosed sum.