- Tech Mahindra has acquired Finastra’s Cash Management product suite, including its cash management, virtual accounts, and liquidity management solutions.
- Tech Mahindra plans to continue supporting existing customers while investing in the products to expand its banking technology portfolio.
- The deal strengthens Tech Mahindra’s position as a banking software provider while allowing Finastra to streamline its portfolio and focus on its core businesses.
India-based consulting services company Tech Mahindra announced it has acquired the Cash Management product suite of financial services software company Finastra.
Under the agreement, Finastra is offloading Fusion Cash Management (FCM), Fusion Virtual Accounts (FVA), and Fusion Liquidity Management (FLM). Specifically, Tech Mahindra has acquired the intellectual property associated with the FCM, FVA and FLM products along with IP and capabilities across CashPlus, Global CashPlus, APIs, payables, receivables, balance and transaction reporting, liquidity management, cash-flow forecasting, and virtual accounts. Tech Mahindra anticipates that adding these capabilities will help grow its Banking, Financial Services and Insurance (BFSI) solutions portfolio.
Additionally, Tech Mahindra made it clear that the products aren’t going anywhere. The company will provide continued investment, innovation, and support for the cash management tools, and will continue providing Finastra’s existing customers with access to and support for the products.
Overall, Tech Mahindra anticipates that the acquisition will put it in a better position to help banks meet evolving demands for cash, liquidity, and transaction banking capabilities. “The acquisition of Finastra’s Cash Management product suite strengthens our banking products portfolio and expands our ability to support financial institutions across critical cash and liquidity management needs,” said Tech Mahindra SVP, Banking Group and Chief Product Officer, Financial Services Anil Venuturupalli. “Through this acquisition, we are creating a strong foundation for continued innovation. Our focus is on evolving these capabilities to help banks address the growing demand for intelligent, connected and efficient cash management solutions.”
Founded in 2017 through the merger of Misys and D+H, Finastra serves 7,000 customers, including 80% of the top 50 global banks, with software spanning lending, payments, and retail banking. The company, which appointed Chris Walters as CEO last year, has been streamlining its portfolio. Today’s deal follows its sale of its Treasury and Capital Markets division to an affiliate of private equity firm Apax Partners approximately 18 months ago.
“This is a good next step for these products, and, most importantly, for the customers who rely on them,” said Finastra Head of Partnerships and Cross Selling Sales Ruchir Purwar. “Tech Mahindra brings deep banking and technology expertise and already knows our business well. We’re confident they are well positioned to take these solutions forward and continue supporting customers as their needs evolve.”
Tech Mahindra is a subsidiary of the Mahindra Group, a multinational conglomerate founded in 1945. With more than 150,000 employees across 90 countries, Tech Mahindra provides IT consulting and digital transformation services spanning AI, cloud infrastructure, analytics, engineering, and business process solutions.
For Tech Mahindra, today’s acquisition will allow it to move beyond consulting and implementation services to own more of the technology banks rely on for their day-to-day operations. Meanwhile, the deal will allow Finastra to streamline its portfolio, allowing it to focus on its remaining core banking, lending, and payments businesses.