TCS Looking to Buy Vertex
reported by Global Services

India’s Tata Consultancy Services (TCS) is looking to buy Vertex, the outsourcing arm of U.K.’s United Utilities, in a deal valued at $800 million to one billion, the Times of India reported citing company sources.

Vertex – the company which has interests in back-office functions like customer services, human resources, procurement, finance and accounting – is perceived by the parent company as a non core business, and hence the decision to sell.

TCS already has an existing relationship with United Utilities, with the latter having signed a multiyear IT maintenance contract, the newspaper noted.

Vertex has about 9,000 employees across U.K., Ireland, Switzerland, U.S.A., Canada and India. The company reported a turnover of approximately $748 million in 2005-06 and a profit of approximately $38 million for the same time period.