Citi 'in talks' to sell IT assets to TCS, Wipro

Citibank is in discussions with Indian IT firms Tata Consultancy Services (TCS) and Wipro, among others, to sell some of its internal IT platforms, according to local reports.

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Citibank is in discussions with Indian IT firms Tata Consultancy Services (TCS) and Wipro, among others, to sell some of its internal IT platforms, according to local reports.

The deal, which could be valued between $60 and $100 million (£36.8 to £61.3 million), includes intellectual property (IP) used for delivering equity trading services, says the Economic Times of India, citing "two people familiar with the discussions".

The Economic Times quotes a senior executive at one of the IT firms negotiating with Citi, who requested anonymity. The source reportedly said: “With this IP, we will not only gain business from Citi, but also be able to offer services to other financial services customers using the same platform.”

Earlier this year, Citi sold its Indian-based IT arm, which provides IT services to Citi entities worldwide, to Wipro for $127 million. In October 2008, Citigroup sold its business process outsourcing unit to TCS for $505 million (£290 million).

Under that deal, the Indian IT services firm will provide $2.5 billion (£1.4 billion) worth of services through Citigroup Global Services to Citigroup and its affiliates over the next nine years.

Calls to Citi and TCS were not returned at time of writing. Wipro declined to comment.