Larsen & Toubro Infotech to acquire Syncordis SA

Larsen & Toubro Infotech (LTI) on Tuesday said it will acquire Luxembourg-based Syncordis SA along with its subsidiaries in France, UK, Luxembourg and India for 15 million euros (about Rs 115.28 crore).

The transaction, which is expected to close within 6-8 weeks, will help LTI expand its core banking implementation capability. "The enterprise value payable for the acquisition of 100 per cent share capital of Syncordis SA and Syncordis India is 14.65 million euros and 0.35 million euros, respectively on a cash-free, debt-free basis and is subject to customary working capital adjustments," it said in a BSE filing.

It added that additionally, an amount of 13.50 million euros may be payable over a period of 4-5 years, contingent on the performance of the target entity.

Founded in 2004, Syncordis SA is a pure-play core banking Temenos specialist. It has over 120 Temenos consultants and in France, UK and India. Global Banking IT spend is expected to grow in the coming years and several banks are investing in core banking modernisation programmes, especially in Europe, LTI CEO and Managing Director Sanjay Jalona said.

"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 added. Syncordis SA registered revenue of 12.04 million euros in 2016, while Syncordis Services India (incorporated in August 2015) had a revenue of Rs 3.02 crore in financial year 2016-17 .