TCS to Buy Deutsche Bank's Technology Unit
Tata Consultancy Services Ltd, which recently became the most-valuable IT company in the world, surpassing Accenture for the first time in terms of market-cap, is in talks with Deutsche Bank to acquire its technology unit, as reported by Bloomberg. The company is expected to close the deal by the end of the year.
The Deutsche Bank had reported significant loss for the last
three months of 2019 and for the full year. The company had a haircut on cut staff and wrote down the value of assets, fuelling the speculations about the company’s trouble as one of the big lenders. TCS’ potential takeover of its 1,400 employees in the South Asian nation will aid Deutsche Bank’s CEO Christian Sewing with regards to his lay off goals.
Of late, TCS’ market value clocked $144.7 billion against Accenture’s $143.1 billion values (as on October 8 closing). En route to the top position, TCS had also gone past IBM, which is closed sale with a market capitalisation of $119.46 billion. With this, among the listed Indian companies, TCS is only behind Reliance Industries in terms of market capitalisation. Reliance Industries’ market capitalization stands at nearly $215 billion.
The company’s staggering numbers in the stock market owes thanks to its Q2 growth results. TCS had announced its consolidated financial results according to Ind AS and IFRS, for the quarter (Q2) ending September 30, 2020. While the revenue was clocked at $5.424 billion, which is a 1.7 percent decrease on YoY, the company witnessed a healthy 7.2 percent QoQ growth and Constant Currency (CC) revenue growth of 4.8 percent QoQ.
Earlier this month, the Indian IT solutions giant had also launched 10 new Threat Management Centers across the globe, aiming to provide cyber security services to its enterprise customers.