Tata Consultancy Services (TCS) has announced the acquisition of 100 percent equity shares in Darshita Southern India Happy Homes for Rs 2,250 crore, the company stated in a stock exchange filing on March 11.
As part of the deal, TCS will acquire the land and building of the real estate firm, which will be transformed into a new delivery centre for the IT giant. The planned centre will be located in Bengaluru, a key hub for India’s IT industry.
Acquisition Structure and Future Plans
This transaction will be executed through a special purpose vehicle (SPV), which includes a call option for the acquisition by TCS of 100 percent equity shares of the company within two years. The company was set up in September 2004 and is a real estate development company involved in developing commercial properties leased out to industrial consumers.
Currently, the property is still under construction and no revenue has thus far been made within the last three years, according to the filing by TCS. The acquisition aligns with the expansion strategy of TCS as the IT sector transitions towards a post-pandemic model with emphasis on working from the office and closer interaction with clients.
This expansion is occurring when other top IT firms such as HCLTech are also increasing their delivery centre networks. HCLTech opened new centers recently in Kerala and Hyderabad as part of the trend where the businesses are shifting towards physical offices while also embracing remote work.
Despite the growing use of automation and AI, the leading IT firms are continuing to hire employees, though with a reduced pace. For example, the new Hyderabad delivery center of HCLTech can accommodate 5,000 employees.
TCS’s acquisition is the company’s long-term expansion plan with strong infrastructure and manpower reinforcement for addressing future demands.
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Source: Moneycontrol.
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