TCS will hold 51 per cent in the merged entity, while MC will hold the remaining 49 per cent. The merged entities will be operational from July 2014.
Commenting on the transaction, N Chandrasekaran, CEO and Managing Director, TCS, said, "This strategic transaction signifies our serious commitment to the Japan market. 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 market.
He added: "We deeply value the partnership with Mitsubishi Corporation and look forward to leveraging our mutual strengths in the Japan market."
The transaction will create a new IT Services company of significant scale in the Japanese market. ITF brings its long standing relationships with Japanese corporations, talented workforce and competencies in industries like retail, distribution and trading. This will complement TCS' deep domain knowledge, technology expertise and strong execution track record. TCS' Global Network Delivery Model (GNDM) capabilities will also enable the Japanese corporations' globalization ambitions.
The company will provide tremendous additional value to clients in Japan; while employees will secure the advantages of building their careers in a global organization.