Tata Consultancy Services to acquire Citigroup Global Services for $505 million

S Ramadorai, CEO and MD, TCSMumbai: Tata Consultancy Services (TCS), India's leading IT services, business solutions and outsourcing firm, has agreed to acquire all of Citi's interest in Citigroup Global Services Limited (CGSL), the India-based captive business processing outsourcing (BPO) arm of Citi for about $505 million in an all-cash deal.

In addition to the sale, Citi has signed an agreement for TCS to provide, through CGSL, process outsourcing services to Citi and its affiliates in an aggregate amount of $2.5 billion over a period of 9-1/2 years.

''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,'' said  S Ramadorai, CEO and MD of TCS.

''This transaction will complement our domain expertise and bring new capabilities to TCS that will help drive growth going forward,'' he said

Citi and TCS already have an existing business relationship whereby TCS provides application development, infrastructure support, help desk and other process outsourcing services to Citi. The current agreement builds upon the existing relationship.

The acquisition will expand TCS's IT and BPO services portfolio in the global banking and financial services sector. TCS's enhanced scale and expertise will provide service improvements to Citi and Citi's customers.