Infotech Lead Asia: Tata Consultancy Services (TCS) is set to buy French IT services company Alti SA for €75 million.
The acquisition of Alti, which has expertise in IT services including enterprise solutions, assurance and CRM solutions, will strengthen TCS’ ability and footprint to service its customers in France and other regions in Europe.
TCS says the acquisition underlines its long-term, strategic commitment to France, the third-largest IT services market in Europe. TCS generated consolidated revenues of $10.17 billion for year ended March 31, 2012.
Alti, which had annual revenues of €126 million in 2012, is one of the top five system integrators of enterprise solutions in France. Its key customers include several top French enterprises in the banking, financial services, luxury, manufacturing and utilities sectors.
Backed up two private equity funds — CM-CIC LBO Partners and IDI — Alti has 1,200 employees based in France, Belgium and Switzerland.
N Chandrasekaran, CEO and managing director, TCS, said: “The acquisition of Alti will help us serve our clients in France and across Europe more comprehensively with an expanded set of services and solutions.”
TCS says it will strengthen its presence in France from the present over 50 clients. The software company seeks to tap the over €30 billion France IT services market in a big way.
France is the largest IT services market in Europe, after the UK and Germany.
Over the last five years, TCS has significantly strengthened its position in the country through local hiring and investments.
Meanwhile, TCS has added $1,179 million in brand value over 2012, growing by 28.9 percent annually to reach the US $5 billion brand value mark. It also retained its position among the “Big Four” most valuable IT services brand worldwide – in the ranking carried out by Brand Finance, the world-leading brand valuation firm.