India's largest private sector company Tata has discreetly tabled an offer to acquire Scandinavian IT Group A/S in Kastrup, Copenhagen which is owned by Scandinavian airline SAS. The offer is rumoured to top DKK 1 billion (USD 157 million). Tata has now entered the acquisition race along with IBM, CSC and Maersk Data.
Per Andersen, MD of the world's largest IT analysis company IDC, thinks that Tata has more than an outside chance of acquiring Scandinavian IT-Group. It would give Tata the opportunity to become established on the Danish and Nordic market which can only happen by buying your way in, not by organic growth, he says. SAS is expected to decide on the sale at a board meeting 11 November where the various offers will be decided on.
Tata's business covers a multitude of areas including production of power stations, computers, cars, aircraft and tea. Tata created India's largest airline, Air India, and has itself worked for most of the world's major airlines. Tata's turnover accounts for no less than 2.4% of India's GNP, corresponding to about DKK 71 billion (USD 11 billion). It is Tata's subsidiary Tata Consultancy Services (TCS) which has sent the offer to SAS. Scandinavian IT Group A/S, which has a workforce of 1,300 people, last year generated a turnover of DKK 1.8 billion (USD 283 million), 90% of the work being related to SAS. The news is reported by national daily newspaper Berlingske Tidende.
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