Hitachi, Ltd. has announced that it will be acquiring Chennai based payment services provider Prizm Payment Services Pvt Ltd, to expand its business in the Indian financial sector. The financial terms haven’t been disclosed by the company but the company has said that it has entered into agreement with Prizm’s shareholders including Winvest Holdings(India) Pvt. Ltd., Sequoia Capital, Axis Bank and other minority shareholders to buy their entire equity stake.
Prizm Payment Services is a provider of end to end Electronic Payment Services across various channels including ATMs, POS, M-POS, Emerging Payments, etc.
Hitachi and Prizm Payment Services will target the end of February 2014 for a completion of the share transfer.
By leveraging Prizm Payment Services’ customer base of financial institutions, and know-how of payment systems, cash operations and management systems for financial institutions, and other expertise, Hitachi will step up development of IT services business in India and globally.
The senior management team of Prizm Payment Services will remain intact.
Hiroaki Nakanishi, President of Hitachi, Ltd. said, “Having Prizm Payment Services as Hitachi family, 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, with Hitachi’s IT expertise and strive to expand the Hitachi Group’s IT services business in India and globally.”
Mohit Bhatnagar, Managing Director of Sequoia Capital was also excited to see Prizm move to the next phase of its journey along with a global leader like Hitachi. “Prizm’s success will be an inspiration for the next wave of startups seeking to build large enduring companies, he said.
Prizm was founded in 2008, it had earned revenues of about INR 500 Cr in year ended in March 2013 and currently has over 1,100 employees.
Hitachi started its business in India in the 1930’s and currently has approximately 30 business bases and about 7,500 employees in the country. Apart from construction machinery and air-conditioning systems, the Hitachi Group in India is also expanding on its ‘Social Innovation Business’, such as information & telecommunication systems, power systems, industrial, transportation and urban development systems.
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