Indian IT services giant Tech Mahindra has inked a deal to acquire Payments Technology Services (PTSL), the captive subsidiary of American fintech FIS.

Tech Mahindra said that it will purchase FIS’ step-down subsidiary for about INR660m ($9m).

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According to a regulatory filing, Tech Mahindra will get access to the IPs and licences for two products, namely, the Open Payment Framework (OPF) and the Multi-Bank System (MBS), with this acquisition.

The acquisition will also provide the company with other opportunities, as a larger partner of FIS in other business areas.

In a statement, the tech giant said that its agreement with FIS will help boost its enterprise payments and banking capabilities.

It is in line with the company’s strategy to expand its global footprint in the banking, financial services and insurance (BFSI) sector.

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To support this strategy, the tech giant will also set up a Centre of Excellence (CoE) in Chennai, India.

Tech Mahindra head of corporate development and global head for financial services Vivek Agarwal said that the BFSI industry is one of the fastest growing sectors.

He added that the company now has a strong presence across key regions including North America, Europe, and Asia Pacific.

Agarwal added: “This move is in line with our TechMNxt charter and is aimed at strengthening our global payments capabilities and offer clients end-to-end payments transformation services and expand this expertise to core banking and digital.”

Founded in 2007, PTSL is a Hong Kong-headquartered payments solutions provider that mainly focuses on banking and financial Services (BFS). It employs nearly 109 people.

The transaction is expected to close by 31 March 2021, the filing added.