Mumbai: IT major Tata Consultancy Services today said it will buy Citigroup Inc’s India-based outsourcing arm for an all cash deal of around $505 million.
TCS has signed an agreement with Citigroup Inc to acquire all of Citi’s interest in Citigroup Global Services Ltd, the company said in a release.
Citigroup Global Services Limited (CGSL) is the India-based captive business processing outsourcing arm of Citi.
In addition to the sale, Citi has also signed an $2.5 billion deal through which TCS will provide process outsourcing services to Citi and its affiliates over nine-and-a-half years. This will be provided through CGSL, the release said.
The acquisition broadens TCS’s portfolio of end-to-end IT and BPO services in the global banking and financial services sector.
“This is a landmark acquisition for TCS, helping us not only acquire new capabilities in the banking domain but also underscoring the importance of our long-term, sustainable relationships with our large customers, including Citi,” TCS CEO and Managing Director S Ramadorai said.
Citi’s Chief Administrative Officer Don Callahan said that the transaction would benefit Citi, its customers, employees and TCS.