Hitachi announced on Tuesday that it had entered into share transfer agreements with all of Prizm’s shareholders, including Winvest Holdings (India), Sequoia Capital and Axis Bank, among others.
According to the announcement, Hitachi aims to grow its revenues in India by nearly three times to 300 billion yen by the end of 2016, and the acquisition of Prizm will allow it to further develop its IT services business in India.
“Hitachi is extremely delighted to conclude the share transfer agreement on amicable terms to acquire Prizm Payment Services with the aim of accelerating the Hitachi Group's development of the Social Innovation Business,” said Hitachi president Hiroaki Nakanishi. “We believe that we can create new value together by wedding the company's strong customer base and payment service and other know-how in India.”
“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,” added Prizm managing director Loney Antony.
Zakir Merchant led Khaitan’s team in conducting due diligence on Prizm, advising on various aspects of the transaction and drafting, negotiating and finalising the deal documents. He said “The transaction is a marquee deal in the ATM industry; it would be categorized as one of the foremost in this niche space. The transaction involved complex structuring, considering the current regulatory landscape.”
The transaction is expected to be completed by the end of February 2014.