Mumbai, Oct 8: Tata Consultancy Services (TCS) will acquire Citigroup Global Services Limited (CGSL) in an all cash deal worth $505 million.
The deal is expected to be closed by fourth quarter of 2008, said the company release here on Wednesday, Oct 8. In addition to the sale, Citi TCS will provide, through CGSL which currently employes 12,000 with USD 278 million in revenues (2008) process outsourcing services to Citi and its affiliates in an aggregate amount of USD 2.5 billion over a period of 9.5 years.
The acquisition expands TCS's portfolio of end-to-end IT and BPO services in the global Banking and Financial Services (BFS) and is expected to have two immediate strategic benefits for TCS.
Firstly, it will enable TCS to offer comprehensive end-to-end, domain-led solution for business operations of large financial services institutions. Secondly, the deal will also position the company to create banking processing platforms by integrating products and process capabilities.
Commenting on the deal, TCS CEO&MD S Ramadorai said, '' This is a landmark acquisition for TCS and will complement our domain expertise and bring new capabilities to TCS that will help drive growth going forward.''