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The company has entered into an agreement with Prizm Payment's shareholders, including Winvest Holdings(India) Private Limited, Sequoia Capital, Axis Bank and other minority shareholders, to buy their entire equity stake.
Hitachi, in an email response said it would not disclose the deal value, while stating it's a 100 per cent acquisition. Current managing director, Loney Antony, will continue to hold the same position. Antony was not available for comment immediately.
The share transfer is expected to be completed by February, in accordance with the terms of the agreements and subject to the regulatory approvals, a release stated.
Prizm Payment Services, which is registered in Chennai, is a service provider of payment services using ATMs and PoS systems to banks and financial institutions in India. As on March 31, 2013, its revenue stood at around Rs 500 crore and employee strength at about 1,100.
Hiroaki Nakanishi, president of Hitachi, Ltd in release commented “we believe that we can create new value together by wedding the company's strong customer base and payment service and other know-how in India, with Hitachi's IT expertise and strive to expand the Hitachi Group’s IT services business in India and globally."
The company in a statement further said, it sees India as an important region in its global strategy and is stepping up development of the Hitachi Group’s Social Innovation Business in the country. The company has set forth the growth strategy of expanding global businesses and strengthening service businesses in order to create a business portfolio with growth potential.
The company said, financial institutions in India are working to roll out various services, including mobile device-based payment services.
Hitachi decided to acquire Prizm Payment with the aim of accelerating global development of IT services businesses targeting financial institutions, including ATMs where it has the top share in the Japanese market, said the company in a statement.
By leveraging Prizm Payment Services' customer base of major financial institutions, and know-how of payment systems, cash operations and management systems for financial institutions, and other expertise, Hitachi will step up development of IT services businessin India and globally.
Both companies will utilise their respective business process integration skills to work toward a smooth process to maintain business momentum, retain personnel and continue the highest quality of customer support. The senior management team of Prizm Payment Services will remain intact and be integral to the success of Hitachi’s goals of this acquisition.
Loney Antony, Managing Director, Prizm Payment Service in the same release commented that this capture synergies from the combination of Prizm Payment Services' customer base and know-how in India, and the Hitachi Group’s expertise in IT services for financial institutions built up in Japan and around the world as well asits advanced technological capabilities, including cash recycling ATMs.
Being part of the larger Hitachi family provides an opportunity to expand the service offerings to customers not just in India but across the globe. Furthermore this deal provides the management team and employees tremendous potential for professional growth, said Antony.
