Nomura Holdings, Japan's largest broker, has officially announced its take over of Lehman's backoffice in Mumbai which would see it absorb more than 3,000 employees of the erstwhile Wall Street giant. Nomura said in a statement that - "it has made an agreement with Lehman
Brothers Holdings Inc. to acquire Lehman Brothers Services India Private Limited, Lehman Brothers Financial Services (India) Private Limited, and Lehman Brothers Structured Finance Services Private Limited, all specialized service companies based in Powai, Mumbai."
Also all assets as well as issued and outstanding shares of the three companies will be purchased by Nomura. This will be unlike other deals stuck by Nomura, which only involved acquisition of human capital.
"The acquisition of Lehman's operations in Powai is an important component of our global expansion strategy. It will allow us to significantly enhance our global service platform to support the business expansion that the combined talents of Nomura and Lehman will drive going forward," said Kenichi Watanabe, President and CEO of Nomura.
Lehman's backoffice in Powai was formed in 2005 and it includes 1,200 IT professionals with other employees. Lat month, Nomura had bought out Lehman's Asian business for $225 million and is now doling out bonuses to retain the top employees.