Tata Consultancy Services Ltd (TCS), the country’s largest software services firm, has signed definitive agreements with Japan's Mitsubishi Corporation to merge its Japanese arm TCS Japan Ltd with two firms IT Frontier Corporation (ITF) - a wholly-owned unit of Mitsubishi and Nippon TCS Solution Center Ltd (NTSC), as per a stock market disclosure.
The merged entity will be operational from July 2014 in which TCS will hold 51 per cent stake while Mitsubishi will hold the remaining 49 per cent stake. It will create a strong IT services unit with a base of over 2,400 associates in Japan and will have revenues of over $600 million per year.
“This strategic transaction signifies our serious commitment to the Japan market. TCS will now have the scale, strong local presence and our full range of global capabilities to serve the Japanese corporations effectively and accelerate our growth in Japan market," said N Chandrasekaran, CEO and MD, TCS.
In this deal, ITF brings its long standing relationship with Japanese corporations, talented workforce and competencies in industries like retail, distribution and trading.
This will complement TCS' domain knowledge, technology expertise and strong execution track record.
Mitsubishi is engaged in the general trading business globally and its business interest includes energy, metals, machinery, chemicals and living-essentials.