The Hindu Business Line : Nucleus Software picks up 25 pc stake in GMAC India

SOFTWARE products company Nucleus Software Exports Ltd on Friday announced it has acquired 25.1 per cent stake in Chennai-based GMAC Financial Services India Ltd (GMAC India), the Indian automotive finance operation of General Motors Acceptance Corporation.

The total investment by Nucleus Software is around Rs 13.65 crore, Nucleus Software Exports said in a notice to BSE.

Explaining the rationale behind purchase of the equity, Mr Vishnu R Dusad, Managing Director, Nucleus Software Exports Ltd said, "We have been working with GMAC for five years and have done implementation (of IT projects) for them in five countries including China. We are now looking at implementations in other countries as well, so we wanted to understand their business as an insider. This deal will help us get an insight into their North American business."

Nucleus purchased the stake in GMAC India from TCFC Finance Ltd.

The remaining 74.9 per cent stake in the capital of GMAC India will continue to be held by US-based General Motors Acceptance Corporation (GMAC), a US-based wholly owned subsidiary of General Motors.

"Nucleus Software, as a global software product vendor for the financial services community, is always looking at deepening its understanding of processes within the markets in which our clients operate," he said.

He expressed confidence that Nucleus' stakeholders would receive enhanced value in terms of increased product functionality as well as best practices to be gained from the close working relationship with the financial services companies.

Mr John R Jones, Vice President - Strategic Planning and Implementation of GMAC International Operations said, "We are very happy to partner with Nucleus in our Indian joint venture. They support and understand our business and already are a key strategic partner and the supplier of choice in GMAC International Operations' information technology."

GMAC is one of the world's largest financial services companies, with business lines in automotive finance, commercial and residential mortgages, and insurance.

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