Oracle Financial Services Software Limited has entered into a definitive agreement with an existing US-headquartered global bank for a significant Proposed Transaction. This involves licensing certain software products in perpetuity and providing extensive transition services. The aggregate consideration for the perpetual license is estimated at approximately USD 100 million (about INR 940 crore). The transaction is subject to several closing conditions that must be met by May 29, 2026.
Details of the Proposed Transaction
Oracle Financial Services Software Limited announced on March 26, 2026, that it has signed a definitive agreement with a major existing customer, identified only as a global bank headquartered in the USA (the “Customer”).
The core of the Proposed Transaction involves two primary components:
- Licensing specific software products to the Customer in perpetuity.
- Providing related transition services, personnel, and associated aspects.
This new agreement is set to supersede all previous software license, professional services, and support agreements currently in place with the Customer.
Consideration and Timeline
The aggregate consideration payable to the Company for the perpetual software license is estimated to be approximately USD 100 million, which converts to roughly INR 940 crore, subject to applicable exchange rates.
In addition to the upfront license payment, the provision of transition services to the Customer is expected to occur over a period ranging from 6 to 9 months after closing, based on mutually agreed terms.
Conditions Precedent and Execution
The consummation of this Proposed Transaction is conditional upon the fulfillment of several conditions precedent. The deadline established for meeting these conditions is on or before May 29, 2026. The Company confirmed that these conditions may include factors that are outside of its control.
International Nature of the Contract
The contract has been awarded by an International entity, making the nature of the order inherently International. The entity awarding the contract is based in the USA.
The Company further assured the stock exchanges that it will provide timely updates regarding the status of the fulfilment of conditions and the final completion of the Proposed Transaction.
Source: BSE
