Tech Mahindra acquires Finastra’s cash management products

Tech Mahindra has acquired Finastra’s suite of products for cash management, virtual accounts and liquidity management. The deal transfers ownership of the intellectual property behind Fusion Cash Management, Fusion Virtual Accounts and Fusion Liquidity Management, as well as the CashPlus and Global CashPlus offerings.

The acquisition also covers APIs and capabilities for payables and receivables, balance and transaction reporting, cash flow forecasting, and virtual accounts. Experienced product engineering and customer success staff will move to Tech Mahindra. Existing customers will continue to have access to the platforms, services and support. The companies did not disclose the financial terms.

Responding to corporate banking needs

Tech Mahindra says corporate and institutional banks are placing greater emphasis on real-time cash visibility, liquidity optimisation, and automated payables and receivables. Compliance, API-based treasury connectivity and lower operating complexity are also key priorities.

The acquired products will join Tech Mahindra’s banking, financial services and insurance portfolio. The company plans to continue investing in their development. Anil Venuturupalli, SVP of the Banking Group and Chief Product Officer for Financial Services at Tech Mahindra, said the acquisition strengthens the company’s banking product portfolio and expands its ability to support financial institutions with cash and liquidity management. He said development will focus on growing demand for connected and efficient cash management.

Continuity for existing customers

Tech Mahindra is bringing together ownership of the product IP and an established customer base with specialist product and customer success teams. The acquisition also builds on Tech Mahindra’s existing Finastra Centre of Excellence and the companies’ partnership. The company aims to use these resources to maintain customer continuity and expand in cash and liquidity management, virtual accounts, supply chain finance, cash flow forecasting and related transaction banking services.

Ruchir Purwar, Head of Partnerships and Cross Selling Sales at Finastra, described the deal as a positive next step for the products and their customers. He said Tech Mahindra knows Finastra’s business well and is well positioned to develop the solutions further. Listed on India’s NSE and BSE, Tech Mahindra has more than 150,000 employees across 90 countries. Finastra, backed by Vista Equity Partners, provides software to thousands of financial institutions in more than 100 countries. After previously working with Finastra as a partner, Tech Mahindra will now own the products.