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News : Tech Mahindra to Acquire Target Group
Mumbai, India, May 27, 2016 -- Tech Mahindra Ltd., a provider in digital transformation, consulting and business re-engineering, has entered into an agreement to acquire Target Group, a processing platform company in the UK. The transaction is expected to close in Q2 FY17, subject to the receipt of regulatory approvals.
The acquisition strengthens Tech Mahindra’s BFSI practice by access to IP and platform which helps automate end-to-end processes in the lending, investments and insurance market. Tech Mahindra intends to leverage its global footprint and enhance the platform to service other markets.
The acquisition is in line with Tech Mahindra's strategy of expanding its Fintech capabilities and adding IP and platforms to drive non linearity and play aggressively in the BFSI sector. Target Group’s proprietary platform automates complex and critical processing, servicing and administration of loans, investments and insurance.
Headquartered in the UK, Target Group has about 740 employees and a strong client franchise, including financial institutions.
As part of the agreement, Tech Mahindra has agreed to purchase 100% of the shares of Target Group. Target Group will remain a standalone entity retaining its existing brand. The entire management team at Target will stay with the business and continue to have full operational responsibility.
The acquisition will help Tech Mahindra to expand its offerings in the lending, savings and investment and insurance sectors. There is also a significant opportunity to cross-sell Tech Mahindra/ Target offerings in each other’s client base and extend the platform to other markets.
CP Gurnani, MD & CEO, Tech Mahindra, says "Target Group’s strong IP and disruptive proprietary platform significantly enhances our Fintech offerings. This acquisition will make us a formidable player in the UK BFSI market with over 50 major financial institutions as clients. The acquisition lies at the confluence of several of our strategic priorities – add IP, double BFSI revenue and expand European footprint. We look forward to welcoming Target Group’s employees into the Tech Mahindra family".
Paddy Byrne, Chairman, Target Group, says "Target Group has been focused on building expertise in the lending, investments and insurance sectors, becoming a market leading player in each of our verticals. We have delivered significant growth over the last three years, with the support of our current shareholder, Pollen Street Capital. We now look forward to the next stage in our growth and by joining with the USD 4 billion Tech Mahindra. It will allow us to serve our clients better by greatly expanding the solutions and services we provide. Over the last three years we have built a strong and extremely credible management team which has enabled us to create a strong brand in our chosen markets, and we relish the opportunity to take the combined Target Group, Tech Mahindra proposition to broader sectors and geographies within BFSI."
Posted by Veronica Silva Cusi, news correspondent
Source: Tech Mahindra
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Tech Mahindra is a leading provider of solutions and services to the telecommunications industry with a majority stake owned by Mahindra & Mahindra Limited, in partnership with British Telecommunications plc.
Published: Monday, May 30, 2016