French IT services provider Atos Origin says it has bought Indian secure payment solutions firm Venture Infotek, move gives it access to the fast-growing Indian market

French information technology services provider, Atos Origin, reported that it had acquired Indian payment firm, Venture Infotek. Venture Infotek is one of the foremost independent firms in the Indian payments market. Currently, Venture Infotek employs about 500 individuals and expects revenue of €30 million in the coming financial year. The Indian firm’s per annum average growth rate was pegged at 35% in the gone three years.

Atos Origin said the Indian investment acquisition marks a rare opportunity for the firm to foray into the Indian payments market, considered one of the world’s fastest growing payment markets. It is expected that the Indian payment industry will continue to grow robustly, given the impressive drivers. For instance, the dynamics of the Indian economy are expected to generate a vital hike in the number of payment transactions, said the French firm.

Other than that, India has one of the biggest banking systems globally, boasting about 60,000 bank branches serving 400 million people, with a low penetration rate of banking cards. Another driver in the Indian payment industry that Atos is keen on taking advantage of is the strong government focus to cut down on the cash economy and install card usage in the country. Atos Origin further said the significant enhancements to the country’s infrastructure and interconnectivity, coupled with a burgeoning number of ATMs and terminals, have as well served as a motivation for the Indian foray.

Atos Origin said Venture Infotek comes as an ideal acquisition that is well placed to partake in the growth of the payments market in India. Venture Infotek has a circa 35% market share, with a robust and experienced local management team. It is as well the only player in India that has multiple clients in the payments market, with an estimated 6 out of 10 banks in India being its long standing customers.

Venture Infotek will be integrated into Atos Worldline, the specialized entity of the French firm’s operations in Hi-Tech Transactional Services (HTTS) and electronic payments. The integration comes as a move aimed at taking advantage of the complementarities and synergies, especially for the portfolio offerings.

The acquisition consideration was 100% cash on closing and was financed through existing credit lines. The transaction is expected to be accretive from the first year with a fast growing impact in the next years.

2 Sep 2010.