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TCS to acquire GE's stake in Tata Consultancy Services Saudi Arabia

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The IT major said it will acquire GE's stake in Tata Consultancy Services Saudi Arabia for a cash consideration of $12,471.

On 24 September 2013, TCS had announced the creation of a first of its kind All-Women Business Process Services Center in Riyadh (Saudi Arabia), in partnership with GE. Over the past seven years, the center has expanded from 20 to almost 1000 women employees and won several awards.

Given GE's planned exit from this partnership, the partners have entered into a definitive agreement subject to closing conditions for transfer of GE's stake in the venture to TCS. On completion of required governance and business changes to effect this transition, TCS will assume full responsibility of the Women's Center, securing its viability in the longer term and allowing it to continue to serve as a source of opportunity and skills development for women in the country.

Post transaction, TCS will hold 100% stake in Tata Consultancy Services Saudi Arabia. The transaction will be executed within a period of 3-6 months.

The IT major reported 16.4% rise in consolidated net profit to Rs 8,701 crore on a 4.7% increase in revenue to Rs 42,015 crore in Q3 December 2020 (Q3 FY21) over Q2 September 2020 (Q2 FY20). The company announced its Q3 results on Friday, 8 January 2021.

The company's consolidated net profit has grown by 7.2% and revenue has risen by 5.4% in Q3 FY21 over Q3 FY20.

Shares of TCS fell 0.25% to Rs 3,167.05. TCS is an IT services, consulting and business solutions organization.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Tue, January 12 2021. 15:25 IST