TCS acquires IT consultancy firm for A$15m

Stan Beer
Sunday, 12 November 2006 10:42

IT Industry - Strategy

IT services firm Tata Consultancy Services has acquired TCS Management (TCSM),  a privately-owned consulting company in Australia for an up-front cash payment of A$1.7 million, plus performance payments for a total of A$15 million over 5 years.

TCSM is privately owned and has over 35 senior consultants with a total turnover of A$5.5 million for the financial year ended June 30, 2006.
 
Neville Roach, the chairman of TCS-owned FNS, will be the chairman of TCSM. Key personnel, most of whom have over 15 years of industry experience, including the current management team will remain with the company.

“The acquisition of TCSM is part of the strategy to substantially grow our Australian business and provide high-end business and IT consulting to our large Australian client base. Local knowledge and domain consulting expertise brought by TCSM will complement TCS' global capabilities in consulting, IT services and BPO to provide greater value to Australian business,” said Girija Pande, Head of Asia-Pacific.

TCSM was established in 1993 and has clients such as ANZ Bank, Commonwealth Bank of Australia (CBA), National Australia Bank (NAB) together with investment banks Macquarie and Goldman Sachs JBWere. Other key markets TCSM operates in are telecommunications and media, retail and the government sector.

Simon Hastings, CEO of TSCM said: “We are excited at the prospect of being part of Tata Consultancy Services. We have enjoyed consistent success because we listen to our customers, work to understand their business and create value for their business. Now with TCS’ strong global systems integration, BPO and managed services capability, we will be able to significantly extend our transformational offering to clients.”

In 2005, TCS acquired FNS, a Sydney-based software solutions company for A$26 million.