TCS acquires French IT services firm Alti for €75 million.
Tata Consultancy Services Ltd (TCS) said it has agreed to buy France’s Alti SA, an information technology (IT) services company, for €75 million (around Rs.532.8 crore today) in an all-cash transaction.
The acquisition will strengthen India’s largest software services company’s ability to service customers in France and other regions in Europe.
“I am confident that this acquisition will help us accelerate our growth and presence in France,” N. Chandrasekaran, chief executive and managing director of TCS, said in a statement on Tuesday.
France is the third-largest IT services market in Europe at more than €30 billion after the UK and Germany. TCS has been operating in France since 1992 and has more than 50 clients in the country. Over the last five years, TCS has significantly strengthened its position in the country through local hiring and investments, it said in the statement.
Alti is a privately held company owned by its management and private equity funds CM-CIC LBO Partners and IDI. Alti’s revenue almost doubled to €126 million in 2012 from €64 million in 2007.
Alti’s customers include French corporations in the banking, financial services, luxury, manufacturing and utilities sectors. The company has 1,200 employees in France, Belgium and Switzerland.
“Supplementing our current services with TCS’s renowned global expertise will provide tremendous additional value to our clients; while our employees will secure the advantages of building their careers in a larger global organization, which is considered a top employer in Europe,” said André Bensimon, co-founder of Alti.
Shares of TCS rose almost 2% to Rs.1510 at 12.15 pm on NSE on Tuesday, while the exchange’s benchmark Nifty gained 52 points at 5595.
Source : Livemint.