French IT services provider Atos Origin has acquired Indian payment processing company, Venture Infotek, to target the booming Indian market for electronic payments.
The acquisition will give Atos Origin a strong presence in the Indian payments processing market, which is set to grow as the Indian government is encouraging non-cash payments in the country, said Milind Kamat , CEO of Atos Origin India, on Friday.
The government's move to introduce unique IDs for Indian citizens is expected to give a further boost to the market, he added.
Kamat did not disclose the price that Atos Origin paid for the Indian company.
Atos Origin said in a statement that the acquisition consideration was wholly in cash on closing, and was financed through existing credit lines. The transaction is expected to add to the company's earnings from the first year with a fast growing impact in the following years.
Venture Infotek expects revenue of Euro 30 million (US$38 million) for 2011, according to Atos Origin. The annual average revenue growth rate of the company was 25 per cent over the last three years, Atos Origin said.
The company will be integrated into Atos Worldline, Atos Origin's unit in hi-tech transactional services and electronic payments. The transaction is fully in line with the strategy of the group to grow these transactional services and to make acquisitions in the payments area, Atos Origin said.
This is Atos Origin's first acquisition in India and is focused entirely on the Indian market, Kamat said.
Venture Infotek, with about 500 staff, has six out of the top 10 Indian banks in the country as its clients. It offers card processing, merchant acquisition, loyalty programs, and government benefits programs on behalf of Indian banks and major retailers.
Atos Origin already has 4,000 staff in India that provide IT services to global customers.