Hitachi Buys Out Shareholders in Indian Electronic Services Company

Nov 26, 2013

Hitachi Buys Out Shareholders in Indian Electronic Services Company

By R. Jai Krishna

Japanese electronics maker Hitachi Ltd. said Tuesday that it plans to buy out all existing shareholders in Indian electronic payments service provider Prizm Payment Services Ltd., as it seeks to benefit from the expansion of financial services in the South Asian country. Hitachi didn’t disclose the transaction value of the purchase of stakes from venture capital firm Sequoia Capital, Axis Bank Ltd., Winvest Holdings India Pvt. Ltd—the investment company owned by Prizm Payments’ founders—as well as other minority shareholders. Neither did it provide a breakdown of current stakes owned by the founders and other shareholders.The company, whose clients include Thales SA, Diebold Inc., VeriFone Systems Inc., American Express Co., Visa Inc. and Mastercard Inc., had revenue of five billion rupees ($80 million) in the fiscal year that ended March 2013 and has about 1,100 employees, Hitachi said in a news release.

It was established in 2008 in the south Indian city of Chennai and provides payment technology services for equipment such as automated teller machines, or ATMs, and point-of-sale systems.

Hitachi hopes to take advantage of rapidly growing demand for financial service systems in India,  it said, noting that ATMs, for example, are forecast to nearly triple in number in four years from around 100,000 in 2012.

Citing technology research firm International Data Corp, Hitachi said spending on information technology products and services in general is expected to grow by more than 10% for the next five years through 2017.

“Meanwhile, financial institutions in the country are working to roll out various services, including mobile device-based payment services,” it said.

Hitachi and Prizm Payment Services aim to complete the transaction by end of Feb. 2014, subject to agreements and regulatory approvals, Hitachi said.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (, the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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