Infosys Banking Group Announces a Strategic Acquisition
Acquires Treasury Products division of US - based Company - IQ Financial Systems, Inc.
Mumbai, June, 20 th 2002: The Banking Business Unit of Infosys Technologies Ltd (NASDAQ:INFY) today announced that it has acquired the Trade IQ product division of US - based IQ Financial Systems, Inc. The acquisition brings to the Infosys Banking Group's fold the existing Trade IQ clients of IQ Financial Systems Inc, which include some of the top tier and largest commercial and investment banks of Europe, Japan and US with installations in Switzerland, UK, US and Japan. According to the terms of the agreement, the Infosys Banking Group will acquire, in addition to the product, all assets and trained and skilled manpower, which includes Trade IQ domain experts. With this acquisition, Infosys' Banking Group will have ready - to - operate offices with employees in London and Tokyo.
The suite of products acquired from IQ Financial Systems Inc include, Trade IQTM - an Integrated Treasury System, Limits IQTM - Limits Management System and Desktop Risk IQTM. Trade IQTM is an integrated front, middle and back office system that provides full straight - through - processing (STP) and covers a full breadth of money market, foreign exchange, fixed income and their full range of derivatives. The products are based on new generation technologies (OO design, ORB based 3 - tier architecture) and open systems and offer a very high level of interoperability, extensibility and scalability. These products will be marketed and sold as modules or in a consolidated manner under the brand name, Finacle - Treasury.
The Rs. 103 crore (US$ 21. 8 Million), rapidly growing Banking division of Infosys offers banking software products to Retail and Corporate Banking Operations across the globe. This acquisition will provide Infosys the strategic advantage of being able to target the Wholesale & Investment Banking segment as well, and offer all banks a rich and superior Treasury System.
Addressing the media at a Press Conference in the city, Girish Vaidya, Head - Banking Business Unit, Infosys Technologies said, "This acquisition has helped us to emerge as an end to end player in the banking software market with state of the art offerings to Retail, Corporate and Wholesale Banks. The acquisition of this advanced Treasury product brings to us the key competitive advantage of faster time to market in a highly competitive landscape. Furthermore we will be benefited by the addition of personnel who would add tremendous value with their relevant domain expertise."
Edward Ho, President of IQ Financial Systems added, "The closing of this transaction is a positive development for IQ Financial Systems as it allows us to focus exclusively on our core businesses, and continue to bring cutting edge software solutions to the commercial lending and capital markets industries. With Infosys, the current and prospective clients of Trade IQ and its associated products, would benefit from a resource rich, highly motivated software company."
According to Merwin Fernandes, Associate Vice President & Head - Global Sales and Marketing, Banking Business Unit, Infosys Technologies, "The Infosys Banking Business Unit has over the last few years witnessed remarkable growth and success. Our revenues have grown from 15 crores in 1999 to 103 crores in 2002; we have entered several new markets; acquired several new customers. Now this strategic acquisition brings to our fold new world - class products with top tier clientele in advanced markets, thus providing us a head start in these markets and opening up a new revenue line going forward. The acquisition will strengthen our position as a premium player offering end - to - end product solutions to the global banking industry. We are very excited about the opportunities that lie ahead of us."