Bucking the overall weak trend, shares of IT major Tata Consultancy Services (TCS) today settled with over one per cent gain, after the company said it will acquire France-based enterprise solutions provider Alti SA for 75 million Euro (about Rs 533 crore) in an all-cash deal.
Even as IT peers Wipro and Infosys had a bad day in the markets, shares of the Sensex constituent ended 1.10 per cent higher at Rs 1,497.30 on heavy purchases after the deal announcement. During intra-day trading, the stock surged 2 per cent to Rs 1,512.
At the NSE, the scrip closed at Rs 1,500, up 1.30 per cent.
“TCS was seen in positive after news of its making a deal of buying French IT services company Alti SA,” said Nidhi Sarawat, Senior Research Analyst, Bonanza Portfolio Ltd.
The acquisition will help transform TCS into a major player in France, the third-largest IT services market in Europe, and provide the firm access to bluechip French and European clients in banking, luxury, manufacturing and utilities sectors.
TCS in a release said ”...it has signed definitive agreements for the acquisition of 100 per cent equity shares in Alti SA, an IT services company in France, for a value of 75 million euro in an all-cash transaction.”
The acquisition will strengthen TCS’s ability and footprint to service its customers in France and other regions in Europe, it added.
Alti SA is a leading French technology services firm with expertise in IT services including Enterprise Solutions, Assurance and CRM solutions.