*Tata Consultancy Services, the country's largest IT services exporter, has signed a deal to merge its Japanese unit with Mitsubishi Corp’s IT arm, the company said on Monday.
TCS will hold 51% of the merged company — TCS Japan — while Mitsubishi Corp will own the remainning 49%. The new entity will be operational from July 2014. It will have over $600 million in annual revenue and over 2,400 employees.
TCS paid for the merger with equity and $50 million in cash. The transaction values the combined entity at $300 million, subject to certain purchase price and closing adjustments, TCS said in a statement.
“TCS will now have the scale, strong local presence and our full range of global capabilities to serve the Japanese corporations effectively and accelerate our growth in Japan market,” N Chandrasekaran, TCS's CEO and managing director, said.
TCS shares touched a high of R2, 242, up 1.11%, during intra-day trade on the BSE on Monday. They were trading at R2, 230.35 at 2.15 p.m.