Tata Consultancy Services (TCS), Asia’s biggest software exporter by market value, has not slowed down in closing mergers and acquisitions.
In a recent interview, TCS CFO, V Ramakrishnan explained that the company’s biggest acquisition so far—its $505 million deal for Citigroup Global Services (CGS)—happened during the global financial crisis in 2008. He added that TCS currently also has enough cash on its balance sheets to weather any financial storms that may arise.
With that in mind, TCS recently announced that it will acquire Ireland-based Pramerica Technology Services, a unit of insurance giant Prudential Financial. With the deal, TCS will take over certain assets of the tech-services firm and onboard its 1,500 employees, although no cash will be exchanged. The deal benefits both companies: Prudential is able to cut costs in response to the COVID-19 pandemic, and TCS will gain a development center in Ireland and expand its digital services and solutions business in Ireland, the U.K., Europe, and the U.S.
In addition, TCS recently formed a partnership with Amway to transform the leader in direct selling’s global technology operations by transforming its IT infrastructure, operations, and global service desk.
Now comes the news that Deutsche Bank has agreed to sell its technology services unit, Postbank Systems, to Tata. The two companies hope to finalize the deal by the end of the year, with Deutsche take a hit of about 120 million euros ($140 million).
Despite the loss, the deal will help Deutsche meet its job-cutting target as Tata will take over PB System’s 1,500 employees in Germany. The bank had revealed last year that it would eliminate 18,000 jobs, with about half from Germany.
“It’s a very important deal that solidifies our position in Germany, already one of our fastest-growing markets,” TCS Chief Operating Officer, N.G. Subramaniam said. “We can leverage the banking skill sets of Postbank employees to push for further growth; we are already seeing multiple opportunities in our conversations with a number of small and medium German banks.”