JOIN USIT firm CMC today said it will be merged with India's largest software services firm Tata Consultancy Services.
"The Board of Directors of CMC and TCS have approved the amalgamation of CMC with TCS pursuant to and subject to the provisions of Sections 391 to 394 of the Companies Act, 1956," CMC said in a filing to the BSE.
CMC shareholders will get 79 equity shares of Re 1 each of TCS for every 100 equity shares of Rs 10 each of CMC, it added.
The swap ration has been arrived at based on the valuation report prepared by BSR & Associates LLP.
The consolidated revenue of CMC for the quarter ended September 30, 2014 stood at Rs 616.69 crore with net profit of Rs 76 crore.
"The amalgamation will enable TCS to consolidate CMC's operations in a single company with rationalised structure, enhanced reach, greater financial strength and flexibility," CMC said.
It will aid in achieving economies of scale, more focussed operational efforts, standardisation and simplification of business processes and productivity improvements, it added.
Incorporated in 1975, CMC has over 11,000 employees.