Nomura Holdings, a Japanese financial services group, announced Monday that it has entered into an agreement with ailing Lehman Brothers Holdings to acquire Lehman's back office and IT operations in Mumbai, India for an undisclosed amount.
Lehman Brothers filed for bankruptcy protection last month.
Nomura will acquire three companies - Lehman Brothers Services India Private Limited, Lehman Brothers Financial Services (India) Private Limited, and Lehman Brothers Structured Finance Services Private Limited - which are all specialised service companies in Powai, Mumbai.
Nomura announced last month it would acquire Lehman Brothers' franchise in the Asia-Pacific region and its European and Middle Eastern equities and investment banking operations.
The crisis in the US financial services sector may impact offshoring of back office operations and IT services to India in the short term, according to India's National Association of Software and Service Companies. Struggling financial services companies are expected to close down or sell their operations in India, and reduce outsourcing to Indian companies in the short and medium term, according to analysts.
Lehman's operations in Powai were set up in 2005 to provide operational support, particularly in the area of IT, across the Lehman network. The acquisition will add to Nomura's global network approximately 3,000 employees, including 1,200 IT professionals, Nomura said in a statement on Monday. It will significantly enhance Nomura's IT functions and other support operations including financial control, operations, risk management, as well as analytical support for various business verticals including investment banking, capital markets, research and prime services, Nomura added.