Infosys and ABN AMRO Announce Strategic Partnership in the Netherlands

PR78054

BENGALURU, India and AMSTERDAM , March 28, 2019 /PRNewswire-KYODO JBN/ --

Strengthens mortgage servicing capabilities through digital platforms

Infosys (https://www.infosys.com/) (NYSE: INFY), a global leader in

next-generation digital services and consulting, today announced a strategic

partnership with ABN AMRO, the third largest bank in the Netherlands

headquartered in Amsterdam. This partnership strengthens Infosys' position as a

leading technology and business process management provider across the mortgage

services value chain, improving experience and operational efficiencies, and

further enhances the company's strategy to help clients navigate their next

digital transformation journeys.

LOGO: https://mma.prnewswire.com/media/633365/Infosys_Logo.jpg   

As part of the announced partnership, Infosys will acquire 75% of the

shareholding in Stater N.V., a wholly owned subsidiary of ABN AMRO Bank N.V.,

that offers pure-play, end-to-end mortgage administration services in the

Netherlands, Belgium and Germany. ABN AMRO will continue to hold the remaining

25% of the shareholding.  

Stater is a market leader in the Benelux region, operating across the mortgage

and consumer lending value chain with deep capabilities in digital origination,

servicing and collection. Stater also brings deep European mortgage expertise

and a robust digital platform to drive superior customer experience. Infosys

will drive the digital transformation roadmap of Stater with accelerators such

as dynamic workflow, API layers, RPA and analytics. The current management team

of Stater will continue to steer the company.

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

specialized knowledge and experience of Stater in the mortgage services market,

combined with the global reach, AI, digital transformation and automation

capabilities of Infosys, can potentially create differentiated solutions for

the market.

Mohit Joshi, President, Infosys, said, "This transaction strengthens our

approach to offer clients digital platforms and industry focused solutions. It

brings together our complementary capabilities to enhance the value we offer to

our financial services clients. We are excited to welcome Stater's talented

team to the Infosys family, thereby enhancing our presence in Europe."

Christian Bornfeld, Member of the Executive Board of ABN AMRO, said, "While

mortgages are a key product for ABN AMRO, providing administrative mortgage

services is not a core activity. That's why we are very pleased with Infosys as

Stater's new majority shareholder. ABN AMRO will keep a strategic interest of

25% and will continue to be an important client to Stater."

Erwin Dreuning, Managing Director, Stater, said, "We are eager to welcome

Infosys as a new shareholder. As they are already active in mortgage

administration services, Infosys offers specific expertise. With the combined

forces of ABN AMRO, Infosys and Stater ensures we have a solid basis to pursue

our plans to for further development of our service offering. Furthermore, it

opens up opportunities for us to grow and service other clients."

The transaction is expected to close during the first quarter of fiscal 2020,

subject to customary closing conditions.

Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure

Requirements) Regulations, 2015

Name(s) of parties with whom the agreement is entered: Infosys Consulting Pte.

Ltd. ("IC"), which is a wholly owned subsidiary of Infosys Limited will be

entering into an agreement with - ABN AMRO Bank N.V., a company incorporated

under the laws of the Netherlands ("ABN AMRO"); and Stater N.V., a company

incorporated under the laws of the Netherlands ("Stater").

Expected date of completion of investment: The transaction is expected to close

in Q1 FY2020, subject to customary closing conditions.

Purpose of entering into the agreement: Founded in 1997, Stater is a wholly

owned subsidiary of ABN AMRO Bank N.V. providing end-to-end mortgage

administration services in the Netherlands, Belgium and Germany.

https://stater.nl/en/  

As part of the transaction, Infosys Consulting Pte. Ltd. will acquire 75% stake

in Stater from ABN AMRO by way of an acquisition of existing shares. ABN AMRO

will continue to hold the remaining 25% of the shareholding.

The strategic partnership is in alignment with Infosys' strategy to strengthen

its mortgage servicing capabilities in Continental Europe

Consideration for the investment: EUR 127.5 million for 75% stake, subject to

customary closing adjustments

Nature of consideration: Cash

Industry to which the entity being acquired belongs: BPM (Business Process

Management)

Brief details of any governmental or regulatory approvals required for the

acquisition: Customary approvals from the relevant competition authority and

the Dutch Authority for the Financial Markets ("AFM")

In case of issuance of shares to the parties, details of issue price, class of

shares issued: No

Shareholding, if any, in the entity with whom the agreement is executed: Nil

Whether, the said parties are related to promoter/promoter group / group

companies in any manner. If yes, nature of the relationship.: No

Whether, the transaction would fall within related party transactions? If yes,

whether the same is done at "arms-length".: No

In case of termination or amendment of agreement, listed entity shall disclose

additional details to stock exchanges: Not applicable.

Significant terms of the agreement: As part of the terms of the Shareholders'

Agreement, Infosys to have the rights of a majority shareholder including the

right to appoint majority of the directors in the supervisory board, right to

subscribe to new shares, right of first refusal in the event of transfer of

shares, right to restrict amendment of Articles, issuance, redemption and

repurchase of shares, merger, demerger, bankruptcy or Liquidation among others.

About Stater

Stater is the largest mortgage service provider of the Benelux. Stater services

1.7 million mortgage and insurance loans for approximately 50 clients in The

Netherlands and Belgium. Stater was founded in 1997 and has a solid client

base. Several of the largest Dutch and Belgian banks see Stater as a trusted

partner for their most important product, mortgages. Stater offers a complete

range of mortgage services and is a front runner in digital services regarding

mortgages and in developing a digital ecosystem for mortgages.

About ABN AMRO

ABN AMRO is a Dutch based bank for retail, corporate and private banking

clients. We are a relationship-driven, knowledgeable and digitally savvy bank,

active in Northwest Europe and with expertise in selected sectors globally. Our

purpose is Banking for better, for generations to come. Headquartered in

Amsterdam, ABN AMRO employs around 19,000 people worldwide. Please visit at

www.abnamro.com

About Infosys

Infosys is a global leader in next-generation digital services and consulting.

We enable clients in 45 countries to navigate their digital transformation.

With over three decades of experience in managing the systems and workings of

global enterprises, we expertly steer our clients through their digital

journey. We do it by enabling the enterprise with an AI-powered core that helps

prioritize the execution of change. We also empower the business with agile

digital at scale to deliver unprecedented levels of performance and customer

delight. Our always-on learning agenda drives their continuous improvement

through building and transferring digital skills, expertise, and ideas from our

innovation ecosystem.

Visit http://www.infosys.com to see how Infosys (NYSE: INFY) can help your

enterprise navigate your next.

Safe Harbor

Certain statements in this release concerning our future growth prospects are

forward-looking statements regarding our future business expectations intended

to qualify for the 'safe harbor' under the Private Securities Litigation Reform

Act of 1995, which involve a number of risks and uncertainties that could cause

actual results to differ materially from those in such forward-looking

statements. The risks and uncertainties relating to these statements include,

but are not limited to, risks and uncertainties regarding fluctuations in

earnings, fluctuations in foreign exchange rates, our ability to manage growth,

intense competition in IT services including those factors which may affect our

cost advantage, wage increases in India, our ability to attract and retain

highly skilled professionals, restrictions on immigration, industry segment

concentration, our ability to manage our international operations, reduced

demand for technology in our key focus areas, disruptions in telecommunication

networks or system failures, our ability to successfully complete and integrate

potential acquisitions, liability for damages on our service contracts, the

success of the companies in which Infosys has made strategic investments,

withdrawal or expiration of governmental fiscal incentives, political

instability and regional conflicts, legal restrictions on raising capital or

acquiring companies outside India, and unauthorized use of our intellectual

property and general economic conditions affecting our industry. Additional

risks that could affect our future operating results are more fully described

in our United States Securities and Exchange Commission filings including our

Annual Report on Form 20-F for the fiscal year ended March 31, 2018. These

filings are available at www.sec.gov. Infosys may, from time to time, make

additional written and oral forward-looking statements, including statements

contained in the company's filings with the Securities and Exchange Commission

and our reports to shareholders. In addition, please note that the date of this

press release is mentioned at the beginning of the release, and any

forward-looking statements contained herein are based on assumptions that we

believe to be reasonable as of this date. The company does not undertake to

update any forward-looking statements that may be made from time to time by or

on behalf of the company unless it is required by law.

Source: Infosys