On February 20, 2008, HCL Technologies declared an acquisition deal, revealing that HCL Technologies Limited was going to acquire Capital Stream Inc. by paying $40 million in cash.The most recent business deal of HCL Technologies was announced on February 20, 2008, making it clear that HCL Technologies was going to acquire Capital Stream Inc., a provider of processing solutions to financial institutions such as commercial banks.
Profile of Capital Stream Inc.
Capital Stream Inc., which was established in 1995, mainly provides processing solutions to commercial banks and financial companies. The innovative software solutions of Capital Stream help the financial institutions to transform their paper-based operations into software-based operations, which in turn, help them in streamlining their operations and in raising their revenue levels.
Details of the Acquisition Deal
Through this acquisition deal, HCL Technologies acquired Capital Stream Inc. by paying $40 million in cash.
After this acquisition, HCL Technologies will be able to increase its capacity for providing end-to-end solutions to the retail financial institutions. Through this acquisition deal, HCL Technology’s multi-service capability will enhance and this will aid the company in providing processing solutions to the financial institutions globally, with a reduced implementation time.
In this respect, Premkumar S, Global Head of Financial Services of HCL Technologies Limited, figured that, as Capital Stream Inc. is a leader in providing integrated solutions to commercial banks and it possesses an extremely efficient management team which believe in value delivery, the acquisition will help HCL Technologies Limited to deliver enterprise solutions to the financial services sector on a large scale. On the other hand, Kevin Riegelsberger, CEO of Capital Stream Inc. stated that Capital Stream has taken this acquisition deal as an opportunity to serve the international customers using the global reach of HCL Technologies. He also said that, after the acquisition, the clients of Capital Stream Inc. would be able to access the efficient business process, world-class technology skills, and international resources of HCL Technologies Limited.
According to some experts, banks outside North America will benefit by this acquisition deal. This is because, after acquisition, the banks outside North America will also be able to use the innovative software solutions of Capital Stream Inc. along with integrated services and technologies of HCL.