Deutsche sells Indian software subsidiary

Deutsche sells Indian software subsidiary

HCL Technologies is to take a controlling interest in Deutsche Software India, a wholly-owned IT services subsidary of the giant German bank.

The deal calls for HCL Technologies to take an initial 51% stake in the bank's Indian software development subsidiary. At the end of a three-year period HCL will acquire the remaining 49% by issuing equity shares to Deutsche Bank.

Under the agreement, HCL will establish a strategic relationship with Deutsche Bank´s corporate and investment bank (CIB) and private clients and asset management (PCAM) business divisions in respect to software development in India. HCL Technologies has grown by offering low-cost software services to western banks and corporations from the Indian sub-continent.

Deutsche Bank says the transaction will enable it to focus on its core competencies and is in line with its cost containment programme. The move follows the bank's decision in July to offload its Emagine Solutions subsidiary to computer services group GFT Technologies.

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