News

U.S. firms seeking stakes in Indian processing companies

March 22, 2005

Economic Times: India's transaction processing business is likely to see some action in the coming days.

A number of foreign players are in talks with two transaction processing firms - HMA and Financial Software & Systems (FSS) - to gain a foothold in the Indian market by acquiring large stakes in these companies.

HMA owns India Switch Company, which operates the Cashtree and Bancs shared ATM networks. It has held talks with foreign technology companies and private equity firms, which are looking to buy out ISC.

The latest to hold talks with HMA is private equity firm General Atlantic Partners. HMA has appointed Mape Advisory Group, an investment banking firm, as advisors to look for a buyer.

In the recent past, HMA held talks with two United States companies, eFunds and First Data, to explore the possibility of selling ISC. First Data also reportedly held talks with FSS to buy a stake in it.

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