UK BPO and fintech provider Target Group acquired by Tech Mahindra
India-based IT heavyweight Tech Mahindra is spending £112 million on Target Group, a UK-based business process outsourcing (BPO) and software vendor.
Target focuses on the lending, investment and insurance sectors, claiming around 50 financial institutions in the UK as customers. Among them are Yorkshire Building Society, Shawbrook Bank, Central Trust and Masthaven. It also works with top-tier names like Credit Suisse and Goldman Sachs.
The seller is Pollen Street Capital, a UK-based private equity firm that was spun out of RBS in 2013 (and was briefly known as SOF Investments).
Target has around 740 employees and two CEOs, Ian Larkin and Bill Alley. They are expected to remain at the helm of the business post acquisition, which expected to be completed in Q2 next year.
In 2015, Target recorded revenues of £51 million.
Tech Mahindra’s MD and CEO, CP Gurnani, comments that this acquisition “significantly enhances our fintech offerings” and will make Tech Mahindra “a formidable player in the UK BFSI [banking, financial services and insurance] market”.
He adds: “The acquisition lies at the confluence of several of our strategic priorities – add IP, double BFSI revenue and expand European footprint.”
Last year, Tech Mahindra acquired Sofgen, a Switzerland-based IT consultant and integrator in the financial services and banking space. The deal was valued at $29 million. Sofgen’s senior management and 500+ staff formed an autonomous unit within the new parent and significantly boosted Tech Mahindra’s activities in the BFSI vertical.