NEW DELHI/NEW YORK: Tata Consultancy Services (TCS), a leading IT services, business solutions and outsourcing firm, and Citigroup Inc (Citi), a leading global financial services company, announced that they have reached an agreement for TCS to acquire all of Citi's interest in Citigroup Global Services Limited (CGSL), the India-based captive business processing outsourcing (BPO) arm of Citi for all cash consideration of approximately $505 million, subject to closing adjustments. In addition to the sale, Citi has signed an agreement for TCS to provide, through CGSL, process outsourcing services to Citi and its affiliates in an aggregate amount of US$2.5 billion over a period of 9.5 years.

The agreement builds upon the existing relationship between Citi and TCS whereby TCS provides application development, infrastructure support, help desk and other process outsourcing services to Citi. The acquisition broadens TCS's portfolio of end-to-end IT and BPO services in the global Banking and Financial Services (BFS) sector.

TCS's enhanced scale and expertise will provide service improvements to Citi and Citi's customers.CGSL is one of the largest providers of business processing outsourcing services within the Banking and Financial Services sector, providing end-to-end process management across the BFS spectrum and a broad array of services to Citi's consumer, corporate and global wealth management businesses world wide.

CGSL has more than 12,000 employees located in India and expects to generate revenues of approximately $278 million in 2008.S Ramadorai, CEO and MD, TCS said, "This is a landmark acquisition for TCS, helping us not only acquire new capabilities in the banking domain but also underscoring the importance of our long-term, sustainable relationships with our large customers, including Citi."

He added: "This transaction will complement our domain expertise and bring new capabilities to TCS that will help drive growth going forward." Don Callahan, Chief Administrative Officer, Citi said, "This is a great transaction that benefits all parties - Citi, our customers, our employees and TCS.