Tata Consultancy Services (TCS) signed an agreement with Citigroup Inc to acquire its captive BPO-Citigroup Global Services (CGSL) for $505 million (around Rs 2,424 crore) in an all-cash transaction. In addition to the sale, Citi has signed an agreement with TCS to provide, through CGSL, process outsourcing services to Citi and its affiliates in an aggregate amount of $2.5 billion over a period of 9.5 years.
The acquisition broadens TCS’s portfolio of end-to-end IT and BPO services in the global Banking and Financial Services (BFS) sector.TCS has provided IT services to Citi since 1992 and is currently one of the largest IT services partners for Citi, delivering IT and business processing outsourcing services to Citi across its operations in North America, Europe, India, Japan, Singapore and the rest of Asia Pacific.The parties expect to close the transaction in the fourth quarter of 2008. Merrill Lynch acted as advisors to TCS in this transaction.
Showing posts with label TCS. Show all posts
Showing posts with label TCS. Show all posts
Wednesday, October 8, 2008
Tuesday, July 17, 2007
Infosys to buy Philips Global's finance BPO
IT major Infosys Technologies is set to acquire Philips Global’s finance and accounts BPO for an assured revenue of $200 million spread over five years.Infosys will be taking over the subsidiary along with all the costs in the similar manner that TCS had acquired the operations of the Pearl Group in the UK.
According to informed sources, once the takeover is completed, Infosys will bring down costs and restructure operations to make it a paying proposition.This will be Infosys’ second acquisition in its 25-year history, after it had acquired Expert Information Services in Australia for around Rs 104 crore ($22.9 million) in 2003.
The acquisition of Philips will bolster the capabilities and reach of Infosys’ BPO, enabling it to deliver round-the-clock. Philips’ F&A captive has operations in Chennai, Warsaw (Poland) and Bangkok. The global staff strength of the captive is around 1,500 with 500 employees working out of the Chennai centre, which was set up in 2004.
Read more in The Business Standard article.
According to informed sources, once the takeover is completed, Infosys will bring down costs and restructure operations to make it a paying proposition.This will be Infosys’ second acquisition in its 25-year history, after it had acquired Expert Information Services in Australia for around Rs 104 crore ($22.9 million) in 2003.
The acquisition of Philips will bolster the capabilities and reach of Infosys’ BPO, enabling it to deliver round-the-clock. Philips’ F&A captive has operations in Chennai, Warsaw (Poland) and Bangkok. The global staff strength of the captive is around 1,500 with 500 employees working out of the Chennai centre, which was set up in 2004.
Read more in The Business Standard article.
Friday, June 29, 2007
TCS close to acquiring 2 firms
The $4.3 billion Indian IT services provider, Tata Consulting Service (TCS), is close to acquiring two IT firms in Latin America.
The estimated value of these two firms is around Rs 200 crore. TCS, with a considerable presence in Latin America, has completed due diligence of the targeted companies.
Sources close to the development said that TCS was looking at one business process outsourcing (BPO) company and an IT services company.
These companies have a headcount of nearly 100 each. These acquisitions would enable TCS to outsource various business activities at much lower cost compared with other international locations.
TCS announced some time ago that it was expanding operations in Latin America by setting up its first global delivery centre (GDC) at Guadalajara in Mexico.
The estimated value of these two firms is around Rs 200 crore. TCS, with a considerable presence in Latin America, has completed due diligence of the targeted companies.
Sources close to the development said that TCS was looking at one business process outsourcing (BPO) company and an IT services company.
These companies have a headcount of nearly 100 each. These acquisitions would enable TCS to outsource various business activities at much lower cost compared with other international locations.
TCS announced some time ago that it was expanding operations in Latin America by setting up its first global delivery centre (GDC) at Guadalajara in Mexico.
Friday, May 25, 2007
Tatas map realty foray, to develop land of group cos
After big ticket acquisitions in the overseas market, the $22-billion Tata group now wants to expand its presence in one of the fastest growing business spaces in India—real estate. The salt-to-telecom conglomerate plans to develop excess land owned by various group companies through the recently-floated $1-billion real estate fund under the Tata Realty and Infrastructure. The group believes the exercise will help it “unlock intrinsic value” for the benefit of the shareholders of its various group firms.
Bombay House, the group’s headquarters, is learnt to be finalising a blueprint for the new business. The group has hired KPMG to outline the commercial development of land owned the group companies. In the first phase, the group would develop the excess land owned by group companies such as Tata Consultancy Services (TCS),Voltas and Rallis India, said sources close to the development.
TCS, the Tata group’s software company, has around 250 acres of excess land spread across Pune and Hyderabad, while consumer goods company Voltas owns 25 acres in Hyderabad. Rallis India, too, owns 100 acres in the southern city.
Read more in The Economic Times article.
Bombay House, the group’s headquarters, is learnt to be finalising a blueprint for the new business. The group has hired KPMG to outline the commercial development of land owned the group companies. In the first phase, the group would develop the excess land owned by group companies such as Tata Consultancy Services (TCS),Voltas and Rallis India, said sources close to the development.
TCS, the Tata group’s software company, has around 250 acres of excess land spread across Pune and Hyderabad, while consumer goods company Voltas owns 25 acres in Hyderabad. Rallis India, too, owns 100 acres in the southern city.
Read more in The Economic Times article.
Thursday, April 12, 2007
TCS looks at foreign listing
Tata Sons, the holding company of the Tata group, is considering a $1 billion-plus (over Rs 4,300 crore) overseas equity sale in Tata Consultancy Services (TCS) this year to fund acquisitions of other entities.
Banking sources said the equity offer may take place in six months and include a fresh share offer as well. The group is examining the pros and cons of listing on the major exchanges, including London, Luxembourg and New York stock exchanges.
A listing on the New York Stock Exchange, where other software giants – Infosys, Wipro and Satyam — are listed, gets immediate attention from global brokerages. But the flip side is the time-consuming compliance norms under the Sarbanes-Oxley regulations.
Bankers said raising funds through an equity sale in TCS makes sense as Tata Sons holds a 78.35 per cent stake in the country’s largest software company. As a policy, Tata Sons chips in with funds whenever any group entity makes a major acquisition.
For instance, Tata Sons is expected to contribute to Tata Steel’s $12.15 billion purchase of Anglo-Dutch steel company Corus, although a major chunk of the money will be raised through debt.
Read more in The Business Standard article.
Banking sources said the equity offer may take place in six months and include a fresh share offer as well. The group is examining the pros and cons of listing on the major exchanges, including London, Luxembourg and New York stock exchanges.
A listing on the New York Stock Exchange, where other software giants – Infosys, Wipro and Satyam — are listed, gets immediate attention from global brokerages. But the flip side is the time-consuming compliance norms under the Sarbanes-Oxley regulations.
Bankers said raising funds through an equity sale in TCS makes sense as Tata Sons holds a 78.35 per cent stake in the country’s largest software company. As a policy, Tata Sons chips in with funds whenever any group entity makes a major acquisition.
For instance, Tata Sons is expected to contribute to Tata Steel’s $12.15 billion purchase of Anglo-Dutch steel company Corus, although a major chunk of the money will be raised through debt.
Read more in The Business Standard article.
Wednesday, March 28, 2007
Sitel buys 50% in India JV from Tatas for $22.2 mn
World's second largest BPO company Sitel Corp has bought back its 50% stake in Sitel-India - a JV it had with the Tata Group for $22.2 million.
India's largest IT company Tata Consultancy Services owned 40% stake in Sitel-India which it has sold to Sitel Corp for $17.73 million. Another 10% stake worth $4.5 million has been bought by Sitel Corp from Tata International.
Sitel India was a joint venture between the Tata Group and Sitel Corp, formed in 2000, with both parties holding 50% of the equity. Sitel India CEO Safir Adeni told ET: "The buyback shows that Sitel Global is very bulish on India. We grew at faster than the BPO industry last year and plan to grow faster with this buyback. We will double our employee headcount to 8,000 in India by 2008."
Read more in The Economic Times article
India's largest IT company Tata Consultancy Services owned 40% stake in Sitel-India which it has sold to Sitel Corp for $17.73 million. Another 10% stake worth $4.5 million has been bought by Sitel Corp from Tata International.
Sitel India was a joint venture between the Tata Group and Sitel Corp, formed in 2000, with both parties holding 50% of the equity. Sitel India CEO Safir Adeni told ET: "The buyback shows that Sitel Global is very bulish on India. We grew at faster than the BPO industry last year and plan to grow faster with this buyback. We will double our employee headcount to 8,000 in India by 2008."
Read more in The Economic Times article
CMC likely to merge with TCS
The Tata group's stated ambition of making a global powerhouse out of Tata Consultancy Services (TCS) is set to get another shot in the arm. CMC, the IT company that the Tatas got control of when the government kicked off a divestment drive six years ago, is ready to be merged with TCS.
This move is in line with the group's policy of merging smaller group companies in the same line of business with the flagship.
Over the last couple of years, group companies like Airlines Financial Services, Airlines Software Development Consultancy India, Phoenix Global Services and Tata Infotech were merged into TCS. CMC, industry sources say, is next. Subsequent to this, sources add, the group will have to consider merging Tata Elxsi into TCS.
Read more in The Times of India article
This move is in line with the group's policy of merging smaller group companies in the same line of business with the flagship.
Over the last couple of years, group companies like Airlines Financial Services, Airlines Software Development Consultancy India, Phoenix Global Services and Tata Infotech were merged into TCS. CMC, industry sources say, is next. Subsequent to this, sources add, the group will have to consider merging Tata Elxsi into TCS.
Read more in The Times of India article
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