India's top software services provider Tata Consultancy Services (TCS) on Tuesday said it will acquire French enterprise solutions provider Alti SA for €75 million (Rs 533 crore) in an all-cash transaction, sending its shares up on the Bombay Stock Exchange.
Alti SA serves clients in banking, financial service, luxury and manufacturing sectors. It posted €126 million revenue in 2012.
"The acquisition of Alti SA will help us serve our clients in France and across Europe more comprehensively with an expanded set of services and solutions," said N Chandrasekharan, chief executive officer and managing director, TCS.
The €30-billion IT services market in France is the largest after the UK and Germany. TCS' acquisition comes at a time when Indian IT companies are trying to expand their presence in Europe to reduce their heavy dependence on the US market. In September 2012, Infosys, TCS' closest rival, bought Switzerland-based Lodestone for $350 million (Rs 1,950 crore).
"The trend of large Indian IT firms making focused acquisitions to fill up gaps in their service portfolio or geographic spread is quite visible. This deal is a right step on both counts," said Dipen Shah, head, research, Kotak Securities.
TCS scrip rose 1.1% to Rs 1497.3 on the BSE, bucking the general trend. The BSE IT index tanked 2%.