TCS acquires Singapore Airlines stake in ASDC
By Mumbai: | 11 Mar 2004
Mumbai: Tata Consultancy Services (TCS) has acquired the stake of Singapore Airlines (SIA), in the joint venture Aviation Software Development Consultancy India Ltd (ASDC), Tata Sons
Singapore Airlines held 51 per cent stake in ASDC, which provides consultancy and solutions to the aviation industry.
According to an official statement, the acquisition of ASDC was completed with the purchase of the residual 51 per cent stake from Singapore Airlines through a cash deal of Rs 14.025 crore paid by Tata Sons Ltd to Singapore Airlines. TCS is a division of Tata Sons.
The Chennai-based ASDC was set up in 1996 primarily to provide SIA with specialised skills for the development and maintenance of airline-related software applications. The company also provides IT services and solutions to other airlines and aviation-related companies.
Prior to the acquisition, TCS held 49 per cent stake through Tata Sons and Tata Industries in the company. The acquisition was completed after a valuation exercise by Deutsche Bank India, an independent financial advisor jointly commissioned by SIA and Tata Sons Ltd.
The statement quoting Mr S. Ramadorai, Chief Executive Officer, TCS, said: "The acquisition of Aviation Software Development Consultancy is the second significant acquisition following our acquisition of Airline Financial Services, last year. ASDC will strengthen our offerings to the transportation industry at large and we will leverage the assets developed through our pervasive marketing network."