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Tata Infotech to merge with TCS

By agencies | Monday, 18 July 2005, 00:00 Hrs

MUMBAI: Tata group infotech companies, Tata Consultancy Services (TCS) board approved the merger of Tata Infotech Ltd (TIL) with itself at a swap ratio of 2:1.

As per the merger scheme, shareholders of Tata Infotech would receive one equity share of Rs one each of TCS for two equity shares of Rs 10 each of TIL, TCS, said CEO and Managing Director S Ramadorai.
He said normal due diligence of TIL would be carried out and after court approvals the merger would be effective April 1, 2005.

The merger will provide TCS an expanded customer base and deeper penetration in key geographies, and these customers will have access wider range of services offered by TCS, he said.

TIL has a significant presence in the systems integration area, particularly in telecommunications and defence, which will supplement capabilities of TCS as well as those of its subsidiary CMC Ltd, both in domestic and overseas markets. The merger is expected to lead to more efficient operations, particularly in marketing of services. All stakeholders would benefit from the resulting combination of highly regarded Tata organizations, he said.

On the joint venture company to be set up in partnership with Chinese Government arm, he said TCS would be the dominant partner while Microsoft would be the minority partner.

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