Tata Consultancy Services (TCS) is all set for acquiring Citigroup’s captive BPO arm Citigroup Global Services (CGSL). Our sources reveal that the deal was pegged at around $550 million and it would be announced within a fortnight.

They said the deal would guarantee TCS to get business for CGSL from Citigroup for five years. When contacted, both Citi and TCS declined to comment on the development. The spokesperson of TCS and Citi said in separate emails that they do not comment on market speculation.

ET had reported on August 19 that TCS was in talks with Citigroup to acquire CGSL. Citigroup has put it on the block as part of the restructuring of its back-end operations in India.

IBM and Genpact are said to be the other bidders. Sources said talks with Genpact fell through, as it sought an exclusivity agreement which Citi turned down. IBM lost interest as there were certain riders which it did not like, sources said.

CGSL, which has over six lakh square feet of combined offices in India, handles multiple operations for Citigroup entities globally. This includes cards, consumer finance, retail banking, capital markets & banking as well as global transaction services. (more…)