TCS acquires majority stake in TKS-Teknosoft
Our Corporate Bureau
31 October 2006
Tata Consultancy Services Ltd has expanded its portfolio of banking products by consolidating its European operations through the acquisition of 75-per cent equity stake in its Switzerland-based partner, TKS-Teknosoft (TKS) for CHF 100.5 million.
"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 MD.
"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," added Ramadorai.
As part of the transaction, TCS has also acquired Alpha and e-Portfolio products from TKS. Alpha provides a strong foothold to TCS in the private banking solutions segment, while e-Portfolio adds to its capabilities in the emerging wealth-management segment. The acquisition of these two products, together with TCS' FNS core banking system, the Quartz platform for wholesale banks and its proprietary products in the treasury, custody, clearing and settlement will make available to TCS clients a complete product portfolio owned and supported by it.
"This acquisition is a winning proposition for all stakeholders. TKS has developed strong relationships with several multinational companies in these markets and TCS can leverage these relationships through its direct presence," said N Chandrasekaran, executive vice president and global head of operations. "The acquisition also brings over 100 professionals into TCS, all of whom have tremendous experience in the European markets," he added.
Founded in 1985 by Pierre E Page, TKS-Teknosoft SA is a Switzerland-based software solutions provider with well-established operations in Europe and has a credible track record of successful implementations of key technology projects in Europe, including the delivery and maintenance of the securities clearing and settlement system of Switzerland.