Mumbai, Paris: Tata Consultancy Services, the biggest Indian IT consulting firm, has signed definitive agreements for the acquisition of 100% equity shares in Alti SA, an IT services company in France.
TCS is paying €75 million in an all-cash transaction. It says the acquisition will strengthen its ability and footprint to service its customers in France and other regions in Europe.
Alti SA is a leading French technology services firm with strong expertise in IT services including enterprise solutions, assurance and CRM solutions. It is a privately-held company owned by its management and two private equity funds, CM-CIC LBO Partners and IDI, which supported its growth from a revenue base of €64m in 2007 to €126 m in 2012. Its key customers comprise several top French corporations in the banking, financial services, luxury, manufacturing and utilities sectors. The company has 1,200 employees based in France, Belgium and Switzerland.
The transaction is subject to customary closing conditions.
N Chandrasekaran, CEO and Managing Director, TCS, 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 SA 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."
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 five years, TCS has significantly strengthened its position France 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. This acquisition will propel TCS into the list of the top IT services firms in the country.
Andre Bensimon, co-founder, Alti SA, added, "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. "