Tech Mahindra to Acquire Target Group - to Augment Platform BPaaS Offerings in BFSI

MUMBAI, May 27, 2016 /PRNewswire/ --

- Strategic Move Strengthens Capabilities to Capitalize From the Burgeoning Fintech Market, With Automation and Straight Through Processing 

- Move Consolidates Tech Mahindra's Competitive Advantage to Better Service the UK Banking, Financial Services and Insurance (BFSI) Outsourcing Market. Synergies Include Expansion of the Platform to Other Global Markets, and  Significant Cross-Selling Opportunities 

- Target Group's Three-Year Revenue CAGR Of 22%, Their IP and Long Term Client Contracts and Relationships Represent Significant Revenue Synergy Opportunities 

Tech Mahindra Ltd., a specialist in digital transformation, consulting and business re-engineering, has agreed to enter into an agreement to acquire Target Group, one of the leading processing platform companies 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 a platform which helps automate end-to-end processes in the lending, investments and insurance market. The acquisition will enhance Tech Mahindra's capabilities and allow Tech Mahindra to capture a larger share of the GBP 45-60 billion annual spend by UK BFSI companies on software and services. 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. The platform helps deliver high quality services with built in compliance in a highly complex and regulated environment. Its capabilities are easily transferrable to new markets.

Headquartered in the UK, Target Group has 740 employees and a strong client franchise, including leading financial institutions such as Goldman Sachs, Morgan Stanley and Credit Suisse, specialist lenders such as Shawbrook and mutual organisations, such as Yorkshire Building Society. Target Group had revenues of GBP 51 Million in 2015. Target Group's strong client relationships help it generate significant recurring revenues. Target Group also has a strong pipeline which provides for high earnings visibility and cash flow generation.