Tata Consultancy Services Ltd. has signed definitive agreements for the acquisition of 100 percent stake in France-based IT company Alti SA for a consideration of 75 million euros in an all-cash transaction.
The acquisition will strengthen TCS's ability and footprint to service its customers in France and other regions in Europe and will propel TCS into the list of the top IT services firms in the country.
The transaction is subject to customary closing conditions.
The company said it plans to added 1,200 employees across France, Belgium and Switzerland.
Assessed at over 30 billion euros, the France IT Services market is largest in Europe, after the UK and Germany. TCS has been operating in France since 1992 and has over 50 clients in the country, including several of the CAC 40. Over the last 5 years, TCS has significantly strengthened its position in the country through local hiring and investments. In recognition of these initiatives, the company had been conferred the special award for Investment and Innovation by the Greater Paris Investment Agency in 2012.
TCS CEO and Managing Director N. Chandrasekaran said, "This acquisition underlines our long-term, strategic commitment to France, which is the third largest IT services market in Europe. The acquisition of Alti will help us serve our clients in France and across Europe more comprehensively with an expanded set of services and solutions, bringing the best of TCS to French corporations. I am confident that this acquisition will help us accelerate our growth and presence in France."
Alti co-founder Andre Bensimon commented, "This is a significant step that will benefit both our clients and employees. Supplementing our current services with TCS' 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."
At the BSE, Tata Consultancy Services shares are currently trading at Rs.1,500.05, up 1.29 percent from the previous close.
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