Tata to acquire French IT services company Alti
Outsourcer hopes $97 million acquisition will help it grow in France and the rest of Europe
IDG News Service - Tata Consultancy Services is to acquire French IT services company Alti in a bid to increase its presence in the European market.
India's largest outsourcer said in a filing Tuesday to the Bombay Stock Exchange that it has signed definitive agreements to acquire 100% of the equity in privately-held Alti for $97.5 million in an all-cash transaction.
The deal will help it grow in France, regarded as the third largest IT market in Europe after the U.K. and Germany, TCS said in the filing.
Alti's key customers include French companies in banking, financial services, luxury, manufacturing and utilities sectors. It has 1,200 employees across France, Belgium and Switzerland, and had revenue of a!126 million in 2012. The company is currently owned by its management and two private equity firms.
This deal holds promise as it could give TCS access to a new set of customers and staff skills, and enable it to increase local delivery of services in France and Belgium which are important markets for outsourcing, said Sudin Apte, principal analyst and CEO of research and advisory firm Offshore Insights.
Indian outsourcers are expanding in Europe, the second largest market for them after North America.
Competitor Infosys acquired in the fourth quarter of last year Lodestone Holding, a management consultancy firm in Zurich with skills in the area of SAP software, as it also tries to build up its presence in Europe, a market that is increasingly driven by the ability to deliver services from locations within the continent.
In business transformation and systems integration services in particular, local delivery has become important, Apte said.
The investments come as Indian outsourcers are beginning to see a recovery in the offshore outsourcing business. TCS' fourth-quarter revenue increased by 14 percent year-on-year to nearly $3 billion for a net profit of $652 million.
The transaction is subject to customary closing conditions.
- Best iPhone, iPad Business Apps for 2014
- 14 Tech Conventions You Should Attend in 2014
- 10 Desktop Apps to Power Your Windows PC
- How to Add New Job Skills Without Going Back to School
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
Red Hat Enterprise Linux - The Original Cloud Operating System
Linux adoption is growing against a number of measures, such as the
number of supercomputers that run Linux and the size of the contributing...
- OpenStack Hype vs. Reality: CIO Quick Pulse Open-source architecture can enable IT departments to build infrastructure-as-a-service (IaaS) clouds running on standard hardware.
- Future Focus: What's Coming in Enterprise Mobility Management (EMM) Find out why Enterprise Mobility Management (EMM) solutions that are truly future-ready must be designed to enable Machine-to-Machine (M2M) capabilities and much more.
- The CIO's Guide to Enterprise Mobility Management (EMM) This guide will help those making an EMM platform decision make the best choice for their organization.
- Live Webcast Increasing the Value of Your Reports and Dashboards Learn how incorporating other analytical capabilities such as predictive modeling and visualization can increase the value of your reports and dashboards by providing...
- Testimonial: Cystic Fibrosis Trust Peter Hawkins, the Head of IT for Cystic Fibrosis Trust, discusses the role CommVault's Simpana software platform plays in improving the company's information...
- Increasing the Value of Your Reports and Dashboards Learn how incorporating other analytical capabilities such as predictive modeling and visualization can increase the value of your reports and dashboards by providing... All Management White Papers | Webcasts