Deutsche Bank is reportedly in advanced talks to sell its technology services unit to India’s Tata Consultancy Services.
Tata Consultancy Services – Asia’s biggest software exporter and the tech subsidiary of Indian conglomerate Tata group – could take over Deutsche Bank’s Postbank Systems, according to a «Bloomberg» report citing unnamed sources.
There are expectations for a deal to materialize by year-end though negations are ongoing and no conclusions have been made.
If successful, Tata Consultancy would onboard Postbank System’s 1,400 employees while Deutsche Bank would come closer to its restructuring target to reduce 18,000 jobs.
The Bonn-based technology unit generated revenue of 533 million euros ($629 million) in 2015, the latest annual figures available.
Bottom lines aside, the bank is currently focused on importing Postbank’s operational capabilities by merging with its technology in a move that would render Postbank System’s obsolete by 2021-end and shed 1 billion euros ($1.18 billion) of operational costs, the report added.