UK parent denies reports on Vertex sale to TCS
15 Jun 2006
Mumbai: UK''s United Utilities, the parent company of Vertex Financial Services, has refuted press reports about a possible acquisition of its business process outsourcing arm, Vertex Financial Services, by Tata Consultancy Services. Unconfirmed reports on Thursday said TCS is in talks with Vertex''s parent company in the UK and the deal would cost TCS an estimated $800 million.
TCS, however, refused to clarify on the matter. "As a matter of policy we do not respond to any speculative reports", TCS told the Bombay Stock Exchange.
Vertex, a TCS client, has interests in back office functions like customer services, human resources, procurement, finance and accounting. The company has offices in the UK, US, Canada and India and employs 9,000 worldwide. Its two centres in Gurgaon, North India have an employee strength of 1,800.
Reports quoting United Utilities sources, however, said the business process outsourcing unit was not for sale. The company also said it is in consultation with Merrill Lynch on various proposals for acquisitions and mergers.
Vertex, a leading provider of business services and technology solutions, reported a current year turnover of $688 million and an operating profit of $35 million.
