Hitachi has announced that it has entered into share transfer agreements relating to all the issued equity shares of Prizm Payment Services Pvt. Ltd ("Prizm Payment Services") with all the company’s shareholders, including Winvest Holdings(India) Private Limited, Sequoia Capital,Axis Bank and other minority shareholders.
Prizm Payment Services is a leading provider of payment services using ATMs and POS systems to banks and financial institutions in India.In accordance with the terms of the agreements and subject to the regulatory approvals required to consummate the transaction, Hitachi and Prizm Payment Services will target the end of February 2014 for completion of the share transfer.
By leveraging Prizm Payment Services' robust customer base of major financial institutions, and know-how of payment systems, cash operations and management systems for financial institutions, and other expertise, Hitachi will step up development of IT services business in India and globally.
Loney Antony, Managing Director, Prizm Payment Services, said, "By becoming a member of the Hitachi Group, we are excited to capture synergies from the combination of Prizm Payment Services' robust customer base and know-how in India, and the Hitachi Group’s expertise in IT services for financial institutions built up in Japan and around the world as well as its advanced technological capabilities, including cash recycling ATMs. Being part of the larger Hitachi family provides a unique opportunity to expand our service offerings to customers not just in India but across the globe. Furthermore, this deal provides the management team and employees tremendous potential for professional growth."
Mohit Bhatnagar, Managing Director, Sequoia Capital, said, “Sequoia Capital is delighted to have partnered with Prizm when it was just a dream in the eyes of its founders. Prizm's stellar management team have executed on a unique business model to emerge as a leading payments company in India. We are excited to see Prizm move to the next phase of its journey along with a global leader like Hitachi. Prizm's success will be an inspiration for the next wave of start-ups seeking to build large enduring companies."
Both companies will utilize their respective business process integration skills to work toward a smooth process to maintain business momentum, retain personnel and continue the highest quality of customer support. The senior management team of Prizm Payment Services will remain intact and be integral to the success of Hitachi’s goals of this acquisition.
