Mergers and Acquistions News
Categories: BPO
October 15th 2008, 12:32PM
Tata Consultancy Services' (TCS') $505 million (£287.6 million) acquisition of Citigroup's Indian business process outsourcing division (BPO) Citigroup Global Services (CGSL) will not affect its market rating, according to one company.
Standard & Poor's Rating Services (S&P) announced this week that TCS' credit metrics and track record of profitability are strong enough to keep the rating constant, even though liquidity levels at the firm will drop, Business Standard reports.
"The acquisition is in line with TCS' strategy to strengthen its BPO business and will enhance its portfolio of end-to-end IT and BPO services to the global banking and financial services sectors," commented S&P, explaining its decision.
TCS' acquisition of CGS is by far the largest in the group's 40-year history and made the firm the number two BPO company in India behind Genpact.
Its previous biggest purchase was the $94.7 million takeover of a life and pensions outsourcing business from UK firm Pearl Group in 2005.
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