The acquisition broadens TCSâs portfolio of end-to-end IT and BPO services in the global Banking and Financial Services (BFS) sector. TCSâs enhanced scale and expertise will provide service improvements to Citi and Citiâs customers.
CGSL is one of the largest providers of business processing outsourcing services within the Banking and Financial Services sector, providing end-to-end process management across the BFS spectrum and a broad array of services to Citiâs consumer, corporate and global wealth management businesses world wide. CGSL has more than 12,000 employees located in India and expects to generate revenues of approximately $278 million in 2008.
S. Ramadorai, CEO and MD, TCS said: âThis 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.â He added: âThis transaction will complement our domain expertise and bring new capabilities to TCS that will help drive growth going forward.â
Don Callahan, Chief Administrative Officer, Citi said: âThis is a great transaction that benefits all parties â Citi, our customers, our employees and TCS. Our customers require access to increasingly complex processing solutions and this relationship will achieve a âbest in classâ technology model that capitalizes on both CGSLâs expertise in financial services and TCSâs expertise in process optimization. TCS will offer CGSL stronger growth potential and superior continued services to Citi clients around the world. This transaction is expected to help reduce operating expenses related to business processing and will allow us to focus on our core financial services competencies.â
N. Chandrasekaran, COO and Executive Director, TCS added: âThe acquisition of CGSL has two immediate strategic benefits for TCS. It gives us the ability to offer a comprehensive end-to-end, domain-led solution for business operations of large financial services institutions. It also positions us well to create banking processing platforms by integrating our products and process capabilities.â He added: âWe welcome CGSL professionals into the TCS family, where they will be able to participate in the companyâs new growth endeavours.â
TCS has provided IT services to Citi since 1992 and is currently one of the largest IT services partners for Citi, delivering IT and business processing outsourcing services to Citi across its operations in North America, Europe, India, Japan, Singapore and the rest of Asia Pacific.
The parties expect to close the transaction in the fourth quarter of 2008. Merrill Lynch acted as advisors to TCS in this transaction.