The Hindu Business Line : eFunds to acquire India Switch

EFUNDS International India Pvt Ltd, a subsidiary of eFunds Corporation, on Tuesday said that it would acquire the interests of India Switch Company (ISC). ISC is a part of the Chennai-based HMA group. ISC has been offering managed services for bank ATMs and payments processing services. The initial cash purchase price is $17.5 million, subject to working capital adjustments.

A communiqué from eFunds India said that an additional payment "may be made approximately one year following the closing if the business achieves certain revenue objectives during that period." The maximum amount payable in this regard is $2.5 million, it added.

ISC has 273 ATMs as part of its network and oversees about 200 transactions per day per ATM in its network. About 65 employees would move along with ISC to the eFunds stable.

eFunds India employs in excess of 4,000 people at its centres in Gurgaon, Mumbai and Chennai. Eighty per cent of the work done out of these centres is transaction and voice processing to companies outside the group in the area of financial services, retail and telecom. The ISC acquisition is its first initiative in selling to the Indian market.

Mr Atul Kunwar, Managing Director, eFunds India, said that he is currently unable to "articulate on the details of the business objectives set forth for ISC." The current management team at ISC is to continue for at least another year at the helm of ISC.

Asked why the HMA group wanted to sell out of ISC, Mr Harish K. Murthi, chairman of HMA said, "We had done well with ISC. Now, it is time for the company to reach the next level. We (HMA) want to go back to what we know and do best - selling, servicing and maintaining ATMs."

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