Friday, July 18, 2008

TCS TO LOOK FOR ACQUISITIONS IF THEY OFFER STRATEGIC FIT

Mumbai

Tata Consultancy Services, the country's biggest IT software exporter, is looking for acquisitions but only if they offer a strategic fit, a top official said on Thursday.

The company, which declared its first quarter results Wednesday, has USD 1 bn in cash and liquid investment.

N Chandrasekaran, the executive director and chief operating officer of the company, said, "We are comfortable with acquisitions of a few hundred million dollars."

However, he pointed out that identifying a right candidate for acquisition is important. It has to add to the capability. The acquisition has to have a strategic fit, he observed. Referring to the outlook for the rest of the year, he said the company is expecting growth from manufacturing, retail and utilities.

He said the key message he would like to convey is that the company has seen real growth in the US, traditionally the biggest market for the company.

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