Thursday 2 August 2012

Japan's NTT seeking a stake in India's Prizm

Chennai, India-based Prizm Payments Pvt. Ltd. could be turning Japanese. At least somewhat, anyhow, if it reaches an agreement with Japan's NTT Group on that company's bid to acquire a controlling stake in Prizm.

According to an article in India's Business Standard, the two companies are currently in talks. Japan would probably most likely work through its existing subsidiary , NTT Communications India Pvt. Ltd. to effect the deal.

Prizm is currently backed by the Menlo Park, Calif.-based venture capital firm Sequoia Capital. The VC firm is seeking a strategic partner in its Prizm business. Those close to acquisition talks told the Business Standard that India's Tata Communications Ltd., part of the Tata conglomerate, has also been in talks with Prizm.

A controlling stake in Prizm would most likely net the company Rs 800 to 1000 crore ($144 million to $180 million), which it would use to supplement its ATM operations. The 4-year-old company currently manages 10,000 ATMs for India's public sector banks and is in the process of adding 50,000 more, according to the Business Times.

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