Bandhan Financial Services Ltd (BFSL), the promoter of Bandhan Bank, has acquired the London-origin global information technology and business process services provider, Genisys group of companies.
This marks the Bandhan group’s strategic foray into the IT sector. The acquisition was completed just ahead of Diwali in an all-cash deal valued at nearly ₹100 crore, according to sources familiar with the matter.
“The entry into the technology sector is in confirmation with the applicable guidelines for core investment companies, which are allowed to invest in non-financial sectors,” BFSL Managing Director Arvind Agrawal told ET.
“Bandhan Financial Services had surplus cash, which has been deployed to acquire the tech services group with an aim to enhance shareholders’ value. Technology is something which integrates everything together. The potential for IT-driven solutions to address business challenges, especially in the banking and financial services sector, is enormous, and we anticipate significant growth in this area,” Agrawal added.
Restructuring and India Headquarters
The IT services group previously operated as three separate corporate entities:
- Genisys Software Ltd (UK)
- Genisys Software Ltd (US)
- Genisys Information Systems India Pvt Ltd
BFSL acquired all three entities separately and has consolidated them under a single corporate umbrella: Genisys Information Systems India Pvt Ltd. Based in Bengaluru, this entity will serve as the global head office, while the London and New York units will now operate as its subsidiaries.
Beyond banking and financial services, the IT group provides AI-enabled solutions to a variety of sectors, including healthcare, manufacturing, retail & e-commerce, travel & hospitality, media, and marketing & advertising.
“With the support of the Bandhan Group, we can now expand extensively and build new capabilities, particularly in AI-driven solutions,” said Satish Subramaniam, Chief Executive of the Genisys group.
Expanding Beyond Financial Services
This marks the third acquisition by BFSL, but its very first outside of the financial sector. Over the previous two years, the company acquired IDFC Asset Management Company and Aegon Life Insurance to broaden its interests in the financial services space.
The transaction was finalized roughly a month after Bandhan group founder Chandra Shekhar Ghosh returned to the helm as the chairman of BFSL. Ghosh had previously retired from his role as managing director of Bandhan Bank on July 9.
Regulatory Context: RBI regulations dictate that core investment companies require prior approval from the central bank to invest in financial sector entities. However, no prior approval is required for non-financial investments; companies are simply required to report the investment to the regulator within one month of executing the deal.