Tata to acquire French IT services company Alti

The acquisition will help it grow in France and the rest of Europe

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 percent of the equity in privately-held Alti for €75 million (US$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 €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.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags outsourcingMergers and acquisitionsbusiness issuesservicesTata Consultancy Services

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Ada Chan

Dynabook Portégé X30L-G

I highly recommend the Dynabook Portégé® X30L-G notebook for everyday business use, it is a benchmark setting notebook of its generation in the lightweight category.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?