Tata Consultancy Services (TCS) is acquiring Deutsche Bank AG’s technology service business in a move that will strengthen its position in the German market. Financial details of the transaction were, however, not disclosed.

The country’s largest IT service firm announced that it will acquire 100 per cent of the shares of Postbank Systems AG (PBS) from Deutsche Bank AG. PBS is the full-range captive IT service provider that provides project management, application management and infrastructure support services to Postbank and other subsidiaries of Deutsche Bank.

A statement from TCS said that PBS and its around 1,500 employees will become part of the company, thus deepening the relationship between the two organisations. It added that the acquisition will further add to its scale in Germany and strengthen the growth outlook. The transaction is subject to both parties finalising further agreements, which they intend to do by the end-2020. The transaction is also subject to customary regulatory and governmental approvals.

Shares of the IT services giant on Tuesday ended nearly 3 per cent, or Rs 75.95, lower at Rs 2649.95 on the BSE.

“We are pleased to deepen our long-standing partnership with Deutsche Bank, continue to help accelerate their digital transformation, and to acquire market specific capabilities in the banking domain,” N.G. Subramaniam, chief operating officer and executive director, TCS, said while commenting on the transaction.

Present in Germany since 1991, TCS currently partners over 100 leading German corporations in their growth and transformation journeys, including 17 of the DAX30.

TCS had failed to meet estimates when it posted a net profit of Rs 7,475 crore during the second quarter.