Tata Consultancy Services (TCS) on Tuesday announced that it acquired a 100 per cent stake in French IT services firm Alti SA in an all-cash deal worth Rs 533 crore (_75 million).

The strategic acquisition of Alti, which is owned by its management and private equity funds IDI and CM-CIC LBO Partners, will help the India software firm expand its presence in Europe.

Commenting on the deal, TCS Chief Executive N Chandrasekaran said, "The acquisition of Alti will help us serve our clients in France and across Europe more comprehensively with an expanded set of services and solutions, bringing the best of TCS to French corporations."

The deal will bring as many as 1,200 Alti employees as well as several hundred clients in banking, luxury and manufacturing sectors under TCS' jurisdiction. In France, TCS has been operating since 1992 and has more than fifty clients. Alti will contribute an estimated 1.2 per cent to the Indian firm's top line.

Europe, the third-largest information technology services market in the world, is now the second biggest market for TCS after North America.

The transaction is expected to close by the end of June this year.

The announcement of the deal encouraged investors. TCS shares gained 1.10 per cent, or Rs 16.30, to close at Rs 1,497.30 a share.