Tech Mahindra said UK’s Financial Conduct Authority approved its acquisition of Target Group, a financial services outsourcing and software provider.
The transaction, announced on 27th May, will see the current management team remain in the business, ensuring continuity and acceleration of the Target groupś growth strategy. Target’s previous parent was Pollen Street Capital.
Target Group is a leading provider of Business Process Outsourcing and software solutions for over 50 major financial institutions across the globe, including clients such as Goldman Sachs, Morgan Stanley, Credit Suisse, Shawbrook Bank, and the DVLA.
Target Group’s software automates complex and critical processing, servicing and administration of loans, investments and insurance.
Tech Mahindra is buying 100 per cent of the shares of Target Group, but the latter will remain a standalone entity retaining its existing brand and the entire management team.
The acquisition is supposed to strengthen Tech Mahindra’s financial services practice by giving it access to software which helps automate end-to-end processes in the lending, investments and insurance market.
The deal will also allow the company to capture a larger share of the GBP 45-60 billion annual spend by UK financial services companies on software and services.
Tech Mahindra, which has more than 105,000 professionals in 90 countries, said it intends to leverage its global footprint and enhance the platform to service other markets.
“We look forward to working as part of Tech Mahindra to further develop our scale, market share, and, most importantly, our solutions and services for clients.”, said lan Larkin and Bill Alley, Co-Group CEOs, Target Group.