Larsen & Toubro Infotech Ltd, the software services arm of engineering giant Larsen & Toubro Ltd, has agreed to acquire Luxembourg-based Syncordis SA along with its subsidiaries in France, the UK and India.
The deal value is €14.65 million ($17.28 million, Rs 113 crore) for Syncordis and €350,000 for its local arm, Chennai-based Syncordis Software Services India Pvt. Ltd, on a cash-free, debt-free basis, L&T Infotech said in a stock-exchange filing. The amount is subject to customary working capital adjustments, it added.
L&T Infotech also said that it may pay an additional €13.50 million over four to five years depending on the target company’s performance.
The purchase of Syncordis, a banking software solutions provider, will enhance L&T Infotech’s footprint in India and Europe’s financial services market, the Indian company said.
Sanjay Jalona, CEO and managing director at L&T Infotech, said that global banking IT spend is likely to grow in coming years and several banks are investing in core banking modernisation programmes, especially in Europe.
“This is a very synergistic move for us because Syncordis is one of Europe’s leading core banking implementation service providers with blue-chip clients and exclusive expertise to help with faster implementations,” he said.
Syncordis, which was set up in 2004, posted revenue of €12.04 million for 2016 and €10.92 million the year before.
Syncordis India, which was incorporated in 2015, reported revenue of Rs 3.02 crore for 2016-17 and Rs 1.19 crore the year before.
The acquisition is subject to customary closing conditions, which are likely to be completed within six to eight weeks.