NEW DELHI, Oct. 8 (UPI) -- India's Tata Consultancy Services will buy Citigroup Inc.'s back-office operations in India in a deal valued at $505 million, it was announced.
TCS, with headquarters in Mumbai, will acquire all of the U.S. company's 96.26 percent stake in Citigroup Global Services Ltd., The Wall Street Journal reported.
As part of the deal, Citigroup will use TCS for its outsourced operations for more than nine years with orders worth $2.5 billion, becoming the Indian company's largest customer, other reports said.
Currently, the Citigroup back-office has about 12,000 employees.
"This transaction would complement our domain expertise and bring new capabilities to TCS that will help drive growth," the Times of India quoted TCS Chief Executive Officer S. Ramadorai as saying.
Citi India head Sanjay Nayar said the sale is part of the company's strategy to reduce its business process outsourcing operating expenses and to focus on its core financial services expertise, the report said, adding the Citigroup Global Services management team is expected to stay on with the new company.
