India’s Tata Consultancy Services buys PE-owned French IT firm
Two French private equity firms have exited IT services provider Alti to Tata Consultancy Services (TCS) for EUR75 million ($98 million) in cash as the Indian business outsourcing company seeks to broaden its footprint in Europe.
CM-CIC LBO Partners and IDI Group had been investors in Alti, alongside company management, since 2008, during which period turnover nearly doubled from EUR64 million to EUR126 million. It has 1,200 staff based in France, Belgium and Switzerland, providing enterprise solutions, assurance and CRM solutions to clients in the financial services, manufacturing and utilities sectors.
According to Unquote", a sister publication of AVCJ, CM-CIC LBO and IDI delisted Alti in 2008 after taking a 97% stake in its holding company, Financière Alti. The two investors together acquired 54.7% of Financière Alti via sub-holding company - of which CM-CIC LBO held 75% to IDI's 25% - with the remainder held by Alti's founders and management.
"This acquisition underlines our long-term, strategic commitment to France, which is the third-largest IT services market in Europe," N. Chandrasekaran, CEO of TCS, said in a statement. "The acquisition of Alti will help us serve our clients in France and across Europe more comprehensively with an expanded set of services and solutions, bringing the best of TCS to French corporations. I am confident that this acquisition will help us accelerate our growth and presence in France."
TCS, which is 80%-owned by Tata Group, has 263,000 staff in 44 countries providing IT services, consulting and business solutions. Consolidated revenue for the year ended March 2012 was $10.2 billion.
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