TCS Acquires Citigroup Global Services
India’s leading tech services and outsourcing firm, Tata Consultancy
Services (TCS), has completed the acquisition of Citigroup's interest
in Citigroup Global Services Limited (CGSL), an India-based captive
business processing outsourcing (BPO) unit. The acquisition is for all
cash consideration of $512 million.
In
addition to the sale,
Citi has signed an agreement for TCS
to provide process outsourcing services to Citi and its affiliates for
an aggregate amount of US$ 2.5 billion over a period of 9.5 years.
The
acquisition, according to TCS, broadens its portfolio of end-to-end IT
and BPO services in the global Banking and Financial Services (BFS)
sector.
"This
acquisition gives us the ability to offer an end-to-end, domain-led
third-party solution for business operations to our large financial
services clients. We will also work to create platforms for the future
and integrate our strong domain expertise in operations along with our
suite of products for the financial services sector," says
N.Chandrasekaran, COO and executive director, TCS.
CGSL
is a leading provider of business process outsourcing services within
the Banking and Financial Services sector, offering end-to- end
process management across the BFS spectrum and a broad array of
services to Citi's consumer, corporate and global wealth management
businesses world wide. It has more than 12,000 employees located in
India and expected to generate revenues of nearly $278 million in
2008.
TCS
had informed about its decision to acquire CGSL in October 2008.
