Tech Mahindra has acquired Finastra’s Cash Management suite, covering cash management, virtual accounts, and liquidity products for banks.
The deal gives Tech Mahindra ownership of the intellectual property behind Fusion Cash Management, Fusion Virtual Accounts, and Fusion Liquidity Management, as well as IP and capabilities across CashPlus, Global CashPlus, APIs, payables, receivables, balance and transaction reporting, cash flow forecasting, and virtual accounts. Experienced product engineering and customer success staff will move to Tech Mahindra, while existing customers will keep access to the platforms, services, and support. Financial terms were not disclosed.
Demand from corporate and institutional banks
According to Tech Mahindra, corporate and institutional banks are increasingly focused on real-time cash visibility, liquidity optimisation, automated payables and receivables, compliance, API-based treasury connectivity, and lower operating complexity. The suite will become part of Tech Mahindra’s banking, financial services, and insurance (BFSI) solutions portfolio, where the company plans to continue investing in its development.
Anil Venuturupalli, SVP, Banking Group and Chief Product Officer, Financial Services at Tech Mahindra, stated that the acquisition strengthens the company’s banking products portfolio and expands its ability to support financial institutions with cash and liquidity management. According to Venuturupalli, Tech Mahindra will focus on developing the products to meet growing demand for connected and efficient cash management.
Continuity for existing customers
The acquisition brings together the product IP, an installed customer base, specialist product and customer success staff, Tech Mahindra’s existing Finastra Centre of Excellence, and the two companies’ existing partnership. Tech Mahindra aims to use this base to support customer continuity and to grow in cash management, liquidity management, virtual accounts, supply chain finance, cash flow forecasting, and related transaction banking areas.
Ruchir Purwar, Head of Partnerships and Cross Selling Sales at Finastra, described the deal as a good next step for the products and their customers, adding that Tech Mahindra already knows Finastra’s business well and is well placed to develop the solutions further. Tech Mahindra, listed on India’s NSE and BSE, has more than 150,000 employees across 90 countries, while Finastra, backed by Vista Equity Partners, provides software to thousands of financial institutions in more than 100 countries. For Tech Mahindra, which previously worked with Finastra as a partner, the deal makes it the owner of the products themselves.
