Tata Consultancy Services to acquire Citigroup Global Services for $505 million

Tata Consultancy Services (TCS) has agreed to acquire all of Citi's interest in Citigroup Global Services Limited (CGSL), the India-based captive business processing outsourcing (BPO) arm of Citi for about $505 million in an all-cash deal. In addition to the sale, Citi has signed an agreement for TCS to provide, through CGSL, process outsourcing services to Citi and its affiliates in an aggregate amount of $2.5 billion over a period of 9-1/2 years. CGSL is one of the largest providers of business processing outsourcing services in the banking and financial services sector, providing end-to-end process management across the BFS spectrum and a broad array of services to Citi's consumer, corporate and global wealth management businesses world wide.It has over 12,000 employees in India and expects to generate revenues of approximately $278 million in 2008.Citi and TCS already have an existing business relationship whereby TCS provides application development, infrastructure support, help desk and other process outsourcing services to Citi.

TCS has provided IT services to Citi since 1992 and is currently one of the largest IT services partners for Citi, delivering IT and business processing outsourcing services to Citi across its operations in North America, Europe, India, Japan, Singapore and the rest of Asia Pacific. The acquisition is subject to relevant regulatory requirements and closing conditions and the parties expect to close the transaction in the fourth quarter of 2008. Merrill Lynch acted as advisors to TCS in this transaction.