Tata Consultancy Services, the country’s largest software exporter, has signed a definitive agreement to acquire Pune-based start-up Computational Research Laboratories (CRL) for Rs 188 crore ($34 million).
CRL, a wholly-owned subsidiary of Tata group’s holding company Tata Sons, is into high performance computing (HPC) solutions. TCS would acquire the entire stake, the IT major said in a statement.
“CRL’s core capabilities in designing and building high-performance environments, coupled with our strong focus on cloud-based, domain-rich industry platforms makes TCS very relevant to address the customers’ growing requirement of HPC applications,” TCS Managing Director and Chief Executive Officer N. Chandrasekaran said.
TCS, which is also a part of the diversified Tata group, expects this acquisition to enable it to offer HPC solutions and cloud computing services to its large base of customers.
HPC applications are increasingly finding relevance and use among large enterprises, as they look to solve complex business problems such as reducing time-to-market, the company said.
This is driving an increase in adoption of HPC-based applications for modelling, simulations, visualisation and big data analysis across the business.
CRL, which had developed Tata group’s supercomputer Eka, has about 80 employees who will be inducted into TCS after the acquisition, a company official said. However, the time frame for the completion of the acquisition was not disclosed.
TCS shares closed marginally down at Rs 1,262.80 on the BSE on Thursday.