TCS buys out SIA from software venture

Tata Consultancy Services (TCS) has bought out Singapore Airlines' (SIA) 51 per cent stake in their joint venture, Aviation Software Development Consultancy India, for Rs 14.03 crore.

This is the second such joint venture where TCS has bought out its partner, the first being a venture with Swiss Air Lines.

The Chennai-based ASDC was set up in 1996 to provide Singapore Airlines with specialised skills for development and maintenance of airline-related software applications.

The company also provides IT services and solutions to other airlines and related companies. Prior to the acquisition, the Tatas held a 49 per cent stake through Tata Sons and Tata Industries.

The acquisition was completed after a valuation exercise by Deutsche Bank India, an independent financial advisor, jointly commissioned by SIA and Tata Sons.

S Ramadorai, chief executive officer, TCS, said, "This is the second significant acquisition following our acquisition of Airline Financial Services, last year. ASDC will strengthen our offerings to the transportation industry and will leverage assets developed through our pervasive marketing network."

The Tatas acquired Swiss Air's 75.1 per cent stake in Airline Financial Services last year. ASDC has competencies in executing mission critical (TPF) back-end support as well as front-end, client server and mainframe solutions.

The company has 180 technical employees, with Singapore Airlines being the major client.

Apart from the emerging opportunity to offer its services to the other players in the aviation industry, TCS will also focus at developing the competence on TPF at ASDC for developing transaction processing system in businesses such as credit card processing, railways reservation system among others.

TCS will also explore potential opportunities of cross selling in aviation industry as also the banking, financial services and insurance industry.

TCS, a division of Tata Sons, is one of the world's largest global software solutions and consulting services enterprise. It has over 27,000 professionals working at over 100 branches in 32 countries and over 1000 global clients.