Tata Consultancy Services (TCS) has acquired 75% in its Swiss partner, TKS-Teknosoft (TKS), for CHF 100.5 million or around $ 80 million in a move aimed at giving it direct access to continental Europe, and which also aids the consolidation its banking products. The acquisition gives it management control of the company, distribution rights in Europe for the Quartz wholesale banking product and two new products, Alpha (for private banking) and e-Portfolio (for wealth management).
TKS had revenues of $ 57.2 million and net profits of $ 7.7 million in 2005, of which about 60% are from services and the rest from products. Terming it a significant step in increasing its visibility in Switzerland and France and in consolidating its financial services products, TCS CFO S Mahalingam said the acquisition of the remaining 25% stake was also under active consideration. However, he said it would not happen immediately.
TCS also gains the 115 employees of the Swiss firm through the acquisition. The employees are primarily in sales and product engineering. "We don't envisage adding more staff directly but we will invest in additional capability in India for added features and integration of all our financial services products," TCS executive VP and global head of operations, N Chandrasekaran, said. TCS intends to integrate FNS, which it acquired through an earlier buy, and its other proprietary products in treasury, custody, clearing and settlement with Quartz, Alpha and e-Portfolio.