ATM maker Hitachi-Omron to buy Sri Lankan payment service firm
TOKYO, NNA - Automated bank teller machine maker Hitachi-Omron Terminal Solutions Corp. will buy the entire stake in Sri Lanka's payment service provider as it seeks to enhance financial hardware and software services in India, Southeast Asia and other global markets.
The company plans to complete the purchase of Interblocks Ltd. in September, spokesman Seiichiro Kondo told NNA on Friday, without disclosing the value of the deal.
After forming a business alliance in May 2018, the two firms have decided to step up their partnership amid growing use of cashless payments and diversification in payment services globally, according to a company statement released Thursday.
Interblocks, founded in 2000 in the South Asian island nation, develops software for automated teller machines and point-of-sale devices as well as mobile banking services. The Colombo-based firm had 176 workers on its payroll at the end of last year, the statement said.
Most Sri Lankan lenders use Interblocks software. The company has two Philippine subsidiaries, according to Kondo.
By making the Sri Lankan partner a wholly owned unit, Hitachi-Omron, a subsidiary of Japanese electronics and infrastructure conglomerate Hitachi Ltd., aims to boost cooperation, applying Interblocks' development capabilities to operational and maintenance services in addition to hardware development in various countries where the Hitachi group operates, Kondo said.
The Japanese group has strengthened the banking and payment equipment segment and related services for cash and non-cash transactions.
In 2014, Hitachi Ltd. bought Indian payment settlement service firm Prizm Payment Services Pvt. Ltd., which is now Hitachi Payment Services Pvt. Ltd. operating ATMs and POS machines in the South Asian country.
Hitachi-Omron established Hitachi Terminal Solutions India Pvt. Ltd., an ATM-manufacturing unit, in India in 2016, to supply local banks. (NNA/Kyodo)