TCS buys 75% stake in Swiss co
Tata Consultancy Services Ltd said it has acquired 75 per cent stake in Switzerland-based TKS-Teknosoft for Swiss Franc 100.5 million (around Rs 360 crore).
The acquisition will help TCS scale up its business in Europe substantially, helping it to directly access clients in Switzerland and France; it also serves well TCS’ strategy of completing its product portfolio in the banking and financial services area, said Mr S. Mahalingam, Chief Financial Officer, TCS, in a conference call on Monday.
TCS’s UK and Europe operations contribute nearly 20 per cent of the company’s revenues. TKS will add $40-50 million in revenues to TCS’ Continental Europe business, which is growing at 50 per cent, said Mr N. Chandrasekaran, Executive Vice-President and Global Head of Operations.
QUARTZ rights
TKS brings with it 115 employees with experience and domain expertise; it also brings local language capabilities and knowledge of local practices.
TCS and TKS, whose association goes back 35 years, together developed QUARTZ, a wholesale banking product whose IPR is with TCS but whose distribution rights for Europe vests with TKS.
TCS now gets global distribution rights for QUARTZ. As part of the transaction it also acquires ALPHA and e-Portfolio products from TKS. ALPHA gives a strong foothold for the company in the private banking segment and as does e-Portfolio in the emerging wealth-management segment, said a statement from TCS.
TCS will now have a comprehensive portfolio to address every business need in the global banking and financial sector, said Mr Chandrasekaran.
It has FNS for the retail banking space, the other products being in asset management, payments, security and custodial services, clearing and settlement and brokerage.
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