Date:01/11/2006 URL: http://www.thehindu.com/2006/11/01/stories/2006110102351800.htm

Business

TCS buys majority stake in TKS

Staff Correspondent

The consideration is valued at Rs. 360 crore

MUMBAI: Tata Consultancy Services (TCS) has expanded its portfolio of banking products and consolidated its European operations after completing the acquisition of 75 per cent equity stake in its Switzerland-based partner, TKS-Teknosoft (TKS) from the promoter for a consideration of 100.5 million Swiss francs (about Rs. 360 crore), according to a company release.

"This acquisition is very important on two fronts. It gives TCS 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," said S. Ramadorai, CEO and Managing Director, TCS. "The TKS acquisition also helps TCS expand its product portfolio in the banking and financial services space, not only by acquiring marketing and distribution rights to `Quartz' but also by adding new products in the private banking and wealth management space," he said.

TKS-Teknosoft is a Swiss-based software solutions provider with established operations in Europe. With its unique business model in partnership with TCS, TKS has a track record of successful implementations of key technology projects in Europe.

Acquires products

As part of the transaction, TCS has acquired Alpha and e-Portfolio products from TKS. Alpha gives a strong foothold for TCS in the private banking segment and e-Portfolio does so in the emerging wealth management segment.