HSBC buys 20% of Kanbay

International banking and financial services organisation HSBC has bought 20 per cent equity in global systems integrator Kanbay for $US26 million.

Kanbay customers include Racing Victoria, Dairy Farmers, Hewlett Packard and the Victorian Government.

Kanbay's Adelaide-born international president Raymond Spencer said Kanbay would maintain a strong, independent presence despite the sale.

"HSBC is the parent company of the US leading sub-prime lender, HFC, which has been a long-standing client of Kanbay," he said.

"When the opportunity arose for a venture capital shareholder on our registry to exit profitably, it gave HSBC the opportunity to snap up 19.6 per cent of Kanbay for $US26 million," said Spencer.

The purchase puts the company value at around $200 million.

Spencer said the company would hire more staff to strengthen its position in banking throughout Asia.

Kanbay employs more than 80 people in offices in Melbourne, Sydney, Brisbane and Perth. Its headquarters are in the US.

Spencer said Kanbay was finishing the Stakes Payment Program with Racing Victoria, a project that involved a major "seven-figure" investment.

The program would "provide the means for automated entry of horses and the attending payments from throughout Australia and overseas into a single database system and the automated payment of winnings stakes to the relevant owners and trainers".

Spencer said Kanbay began a relationship with Racing Victoria three years ago. The Stakes Payment Program would provide improved processing and management of race financials, effective measures to resolve security and auditing issues, and strengthen Racing Victoria's position to address statutory and regulatory requirements.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

More about HSBCKanbay

Show Comments