Tech Mahindra to Acquire Target Group - to Augment Platform BPaaS Offerings in BFSI - Seite 2

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, which has a strong reputation in the marketplace. The entire management team at Target will stay with the business and continue to have full operational responsibility.

Proprietary platform: differentiated offerings 

Target Group provides BPaaS offerings in the areas of lending and investment products servicing to its clients, on variable pricing models. Its platform operates at considerable volume with high levels of automation, with 95% 'straight through processing'.

The combination of proprietary software, strong regulatory compliance practice and domain knowledge is a key differentiator for Target Group.

Significant Synergies 

Target Group's capabilities are highly complementary to Tech Mahindra's strong BFSI IT services capabilities and significantly enhance its Fintech offerings. The acquisition catapults Tech Mahindra to one of the top 3 processors in UK Financial Services for certain complex lending and investment product categories. It also strengthens Tech Mahindra's European presence and adds several new clients.  

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 four years, with the support of our current shareholder, Pollen Street Capital. We now look forward to the next stage in our growth. By joining with the USD 4 billion Tech Mahindra, it will allow us to serve our clients better through greatly expanding the solutions and services we provide. 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 the Banking, Financial Services and Insurance markets."