Tata Consultancy launches $500-million bid for Lufthansa Systems: report
05 Sep 2011
Tata Consultancy Services (TCS), India's largest software services exporter, has launched a $500-million bid for a controlling stake in the IT subsidiary of the German airline Lufthansa, reports quoting company sources said.
TCS is also negotiating a multi-year contract with Lufthansa, which could yield revenues in excess of $2 billion for the company, the reports said, citing people familiar with the bidding process.
A German magazine had reported last month that Lufthansa was looking to divest 51 per cent stake in Lufthansa Systems and International Business Machines (IBM) too was in the fray. (See: TCS in race for Lufthansa IT subsidiary)
Hewlett Packard-EDS was also in the race for Lufthansa Systems, but the paper said TCS might be able to structure a compelling deal for Lufthansa to consider it as a favoured partner.
Lufthansa, based in Kelsterbach near Frankfurt, was looking to sell close to 80 per cent stake in Lufthansa Systems, with employees and management of the company retaining the remaining stake, according to reports.
Lufthansa Systems, which has customers, including British Airways and Thomas Cook, offers IT solutions for companies across a range of sectors, including aviation, media and healthcare.
The bulk of its customers are from the aviation industry.