Tata Consultancy Services signed a deal with Mitsubishi Corporation of Japan last month to acquire a controlling stake in a new information technology services firm valued at $300 million.

The new IT services firm is being formed by merging IT Frontier Corporation (a Mitsubishi subsidiary) with Tata Consultancy Service Japan Ltd. (the Japanese arm of Tata) and Nippon TCS Solution Center Limited. The last is a present joint venture between Mitsubishi and Tata Japan.

Tata will pay US$50 million in cash and get a 51 percent stake in the new, combined company.

Total revenue for the new firm will be US$600 million a year.

“This strategic transaction signifies our serious commitment to the Japan market,” said Tata Consultancy Services CEO and Managing Director N. Chandrasekaran. “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.”

Tata and Mitsubishi announced the arrangement on Monday.

Tata Consultancy generated revenue of US$13.4 billion in its fiscal year ended March 31, 2014.