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.
- VDI and Beyond: Addressing Top IT Challenges to Drive Agility and Growth This paper explores a collection of compelling FlexCast services to highlight how XenDesktop can drive a modern, mobile workforce toward greater agility and...
- Mission Critical: Managing Mobile Applications & Content Smartphones, tablets and other mobile devices have become embedded in enterprise processes, thanks to the consumerization of IT and a new generation of...
- The Challenges and Opportunities of Mobile Application Development Nearly all business users now demand mobile devices--their own or company-owned--along with anywhere access to corporate applications and data. What turns mobile devices...
- Maintain Less. Create More. Spend less on maintenance and spend more time creating with Red Hat Enterprise Linux. Read on to learn how Red Hat can help...
- On Demand: Mastering the Art of Mobile Content Management Mobile device usage in the enterprise has skyrocketed, and it continues to escalate. IT must answer to users who demand access to their...
- What should I look for in a Next Generation Firewall? SANS Provides Guidance With so many vendors claiming to have a Next Generation Firewall (NGFW), it can be difficult to tell what makes each one different.... All Management White Papers | Webcasts