TCS may buy UK firm Vertex for $800 mn

India's largest software company Tata Consultancy Services is holding discussions with United Utilities to acquire its business process outsourcing arm, Vertex for an estimated $800 million (Rs 3,600 crore).

"Talks are at preliminary stages," sources in the know said. Meanwhile in response to a query, TCS told Bombay Stock Exchange that as a matter of policy it does not respond to any speculative news items or queries in such matters.

"As indicated in the past, acquisitions are a part of the company's growth strategy. Acordingly, the company considers from time to time various proposals for acquisitions and mergers," it said.

Outsourcing and India

A company spokesperson, when contacted, refused to comment. Sources, however, said that the acquisition of Vertex could cost around $800 million to TCS.

Vertex - which runs back office in areas like customer services, human resources, procurement, finance and accounting is already a client of TCS.

It has 9,000 employees across UK, US, Canada and India. The company has two centres in Gurgaon and 1,800 employees.

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