Integrated payment solutions provider Hitachi Payment Services on Wednesday said it has entered into a pact to acquire the cash management business of Writer Corporation for an undisclosed amount.
The buyout will help Hitachi ramp up its market standing by integrating the cash management business into its overall service offerings, while making it as a one-stop payments and commerce solutions provider, the company said in a statement.
The deal will also enable Hitachi Payments to offer comprehensive services to financial institutions, while on the merchant side, it will complement Hitachi Payments’ digital offerings.
In the cash management industry, the cash management business of Writer Corporation has been providing cash services, including ATM cash replenishment and retail cash pick-up services, to corporate clients in India since 2001.
Writer Safeguard has a network of close to 40,000 touchpoints, including ATMs and retail, spanning 25 states across 1,500 locations, serviced by a workforce of over 10,000 people.
Hitachi Payments offers a range of payment solutions, including ATM services, cash recycling machines, white-label ATMs, toll and transit solutions, payment gateway solutions, and other offerings.
“In line with our overall strategy, the deal creates opportunities for us to broaden our service offerings and provides us with a unique position to drive growth and innovation in the Indian payments landscape,” said Sumil Vikamsey, managing director and chief executive officer - Cash Business, Hitachi Payment Services.
Hitachi Payment Services is backed by the Japanese conglomerate Hitachi and is also a partner in a joint venture with the State Bank of India for SBI Payment Services, where it holds a 26% equity stake, while the rest is with SBI.
To date, the company has managed 2 million PoS machines for various banks, including SBI, Axis Bank, IndusInd Bank, and fintech firms like Paytm and BharatPe.
In January, Hitachi Payment Services received in-principle approval from the RBI to act as a payments aggregator.
