Deutsche Bank is in talks to sell one of its major technology units to Tata Consultancy Services Ltd, a Mumbai-based conglomerate, according to a report by Bloomberg.
Postbank Systems AG, a Bonn-based provider, has 1,400 employees and generated $632 million in revenue according to its most recently available report, in 2015. It provides IT to Deutsche Bank’s once-separate Postbank arm. Deutsche Bank is in the midst of merging the two brands as part of a billion-dollar cost-cutting scheme known as ‘Project Unity.’
Insiders familiar with the deal told Bloomberg the deal with Tata Consultancy would conclude by the end of 2020, cementing Tata’s position as Asia’s largest software exporter. Financial details remain unknown, but it could surpass Tata’s 2008 buy of CitiGroup’s back-office unit for $505m.
Deutsche Bank is the largest bank in Germany. With approximately $1.3tr under management it is the eighth biggest investment bank worldwide. Yet its chief executive Christian Sewing has pledged to cut 18,000 jobs – with half of those in the company’s home nation.