Tata, Mitsubishi to create Japan IT firm

India's biggest outsourcing firm Tata Consultancy Services (TCS) and Japan's Mitsubishi Corp said Monday they are teaming up to create a Japanese software services provider with annual revenues of $600 million.
Tata Consultancy Services Japan, Nippon TCS Solution Center and IT Frontier Corp -- a Mitsubishi unit -- will merge to create the provider under the agreement slated to close in June.
"This strategic transaction signifies our serious commitment to the Japan market," TCS chief executive N. Chandrasekaran said in a joint statement with Mitsubishi.
"TCS will now have the scale, strong local presence and our full range of global capabilities to serve the Japanese corporations effectively and accelerate our growth in Japan's market," Chandrasekaran said.
TCS Japan will initially hold a 51 percent stake in the new company while Mitsubishi Corp will hold 49 percent. TCS Japan will have an option to raise its holding later.