Indian outsourcing firm Tata Consultancy Services (TCS) has acquired a 75% stake in its Swiss partner TKS-Teknosoft for $80 million in a bid to increase its presence in the European markets and expand its product portfolio in the financial services space.
Founded in 1985 TKS employs 115 staff and provides onsite and offshore technology services to banks through an exclusive partnership with Tata. The firm earned revenues of SFR71.5 million and net income of SFr9.6 million in the calendar year 2005.
TCS expects the acquisition to raise revenues in Europe by around $40 million. The Indian company turned over approximately $200 million in Europe last year.
In a statement TCS says the deal gives it "a direct presence in the key markets of Switzerland and France with an ability to serve customers with a single face, from sales to delivery".
The acquisition also adds TKS's Alpha private banking platform and wealth management technology e-Portfolio to the TCS product suite. The Indian firm also gains the marketing and distribution rights to its Quartz wholesale banking product in the European region, which were held by TKS.
N Chandrasekaran, EVP and global head of operations, says TKS has developed strong relationships with several companies in the banking and financial services markets and TCS "can leverage these relationships through its direct presence".
"The acquisition also brings over 100 professionals into TCS, all of whom have tremendous experience in the European markets," adds Chandrasekaran.
TCS is expected to acquire the remaining 25% stake in TKS in the future.