TCS may complete CGSL acquisition

MUMBAI: Tata Consultancy Services (TCS) is likely to announce the completion of its Citigroup Global Services Ltd (CGSL) acquisition. The transaction, including the payment to Citigroup and transfer of ownership, is expected to be completed on Wednesday.

However, the company is yet to make an official announcement.

The company had announced the acquisition of Citigroup's captive business process outsourcing (BPO) centre in India, for $505 million in an all-cash deal on October 8, 2008. The deal includes a promise of a record $2.5 billion in committed revenue to TCS over a period of nine-and-half years.

The acquisition has given TCS a committed business pipeline in an uncertain environment and about 12,472 professionals trained in core banking skills, which will be its biggest asset.

This also catapults it to number two position in the BPO rankings-making TCS the largest third-party BPO provider from the country after Genpact.

The deal makes Citigroup one of its top five clients. CGSL expects to close calendar year 2008 with $ 280 million in revenues.

During intra-day trading, the TCS stock was down 0.6% at Rs 479.5.