Tata acquires French IT services firm to increase European presence
When larger companies want to expand their services into new countries, many times it is beneficial to use technology mergers and acquisitions to help them move forward. Smaller firms can have strong local connections, which will be helpful when it comes to reaching new customers.
That is what Tata Consultancy Services (TCS) did when it acquired the French IT services firm Alti this week.
On Tuesday, TCS announced in a press release that it had signed definitive agreements to acquire 100 percent of the equity in privately-held Alti for 75 million euros ($97.5 million) in an all-cash transaction. After the United Kingdom and Germany, France is regarded as the third-largest IT market in Europe, according to TCS, which is why it wants to further stabilize in the country.
"This acquisition underlines our long-term, strategic commitment to France, which is the third-largest IT services market in Europe," TCS managing director and CEO N Chandrasekaran said in the press release. "The acquisition of Alti SA will help us serve our clients in France and across Europe more comprehensively with an expanded set of services and solutions."
Alti has expertise in IT services including Enterprise Solutions, Assurance and CRM solutions, according to The Economic Times. Additionally, it has customers in France's banking, financial services, luxury, manufacturing and utilities sectors. These are all areas in which TCS hopes to grow, according to the news source.
This transaction further underlines the importance of technology merger and acquisition consulting, as companies can benefit from one another when the necessary care is taken to create a viable plan for all involved businesses. Preparations for M&A activity do not need to take years, as it is just as important for company officials to work with one another to find the best deal possible.