Move will enable NETS to add electronic funds transfer,
secure transmissions of electronic data services to existing portfolio
Singapore, 11 April 2017 — NETS, Singapore’s leading payment solutions provider, today said that it has signed an agreement to buy two wholly-owned subsidiaries of Oversea-Chinese Banking Corporation Limited (OCBC Bank) – Banking Computer Services Private Limited (BCS) and BCS Information Systems Pte Ltd (BCSIS).
The transaction is valued at $38 million. Upon the completion of the transaction, BCS and BCSIS will become wholly owned subsidiaries of NETS. Both companies will continue to operate as independent entities within NETS.
NETS' strategic acquisition will enable it to deliver payment innovations that are simple, swift, secure and accessible to its customers. The assimilation of both companies will enable a more pervasive digital payment platform which will facilitate wider adoption and utilisation of electronic payments.
The move by NETS is in line with Singapore's efforts to become a best-in-class electronic payments hub, creating opportunities to drive enhancements and foster collaborations that will support faster transition to a world-leading ecosystem.
BCS manages and operates the clearing and payment infrastructure for the Singapore Clearing House Association (SCHA), including managing an electronic service that allows immediate transfer of Singapore dollar funds between accounts of the participating banks in Singapore. It was set up in 1976 and currently operates core services like the FAST (Fast And Secure Transfers), IBG (Inter-bank GIRO) and CTS (Cheque Truncation System).
BCSIS designs and develops clearing and payment technology solutions for the financial services industry. It also provides bureau services that include cheque processing, lockbox services, document digitisation and imaging, as well as business continuity services.
In the front row, seated (L-to-R) are: Jocelyn Ang, NETS COO; Jeffrey Goh, NETS CEO; Darren Tan, OCBC Bank CFO; and Sng Koon San, OCBC Bank SVP, Corporate Development.
The transaction is expected to be completed in the second quarter of 2017.
NETS CEO Jeffrey Goh said: “The purchase was concluded after a detailed review of the core operations of BCS and BCSIS. We believe this move is complementary to NETS' core electronic payments business and all parties shared the common vision to hasten digital payments adoption in Singapore.
“Upon integration, NETS is well positioned to harness the synergies from this new relationship and deliver payment innovations beneficial to customers across the corporate and retail space,” he said.
BCS Managing Director Jimmy Quek said: “BCS views the move to be part of NETS as a strategic complement. Both organisations share the core value of implementing, managing and operating efficient electronic payment services that are trusted, secure and efficient.”
BCSIS Managing Director Ricky Lim said: “We come into this new relationship with a successful track record of having created visionary payment technology solutions since 1988. These have enabled our customers in Singapore and around the world to benefit from BCSIS’ high-speed, high-volume precision clearing and payment systems. Being part of the NETS group will allow us to provide complementary, integrated and holistic solutions across the entire payments value chain.”