Sopra Steria has been selected to transform the information system of seven Sparda banks in Germany.
The scope of the partnership includes implementing the Sopra Banking Platform product for the seven banks. It will help the lenders to upgrade to the latest digital system as well as reduce operating costs.
In order to carry out the transformation, Sopra Steria plans to acquire 51% stake in the company that maintains and operates the shared information system of the Sparda banks. The acquisition has an equity value of €22.6m.
The acquired company will also be reorganised to facilitate the transformation as well as continue to operate the information system.
The remaining 49% stake will continue to be held by the seven Sparda banks.
Subject to customary closing conditions, the acquisition is expected to close in the second half of this year.
The seven banks are part of the Sparda banking group, one of the largest retail banking networks in Germany.
These banks are based in Augsburg, Stuttgart, Frankfurt, Munich, Regensburg, Nuremberg and Düsseldorf.
Overall, the seven lenders boast more than 2.5 million customers and manage more than 7.7 million accounts.
Headquartered in France, Sopra Steria delivers consulting, systems integration, industry-specific solutions across Europe. The new partnership with the Sparda banks is expected to bolster its presence in the German market.
Last month, the company, through its subsidiary Sopra Banking Software, signed a deal to acquire core banking software vendor SAB.