Indian group buys Welsh finance firm in PS112m deal.
CARDIFF.HEADQUARTERED financial technology firm Target has been acquired in a PS112m deal.
Target, which was set up in 1979 and now also has offices in locations including Newport, Australia and New Zealand, has been acquired by Indian IT services giant Tech Mahindra.
Target specialises in business process outsourcing and software solutions to more than 50 financial institutions across the world including Credit Suisse and Goldman Sachs, The deal, subject to approval from the Financial Conduct Authority, provides an exit for Target's private equity owners Pollen Street Capital four years since its investment.
Tech Mahindra, which is a $4bn company and has a global workforce of more than 107,000, has agreed to acquire a 100% stake in the business at an enterprise value of PS112m.
Target Group has a workforce of 800, led by joint group chief executives an Larkin and Bill Alley - who will remain with the business.
Chairman of Target Group Paddy Byrne said the transaction was a logical and positive next step in Target's ongoing growth.
He said: "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 owner, Pollen Street Capital. We now look forward to the next stage in our growth. By joining with $4bn 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 (BFSI)." CP Gurnani, managing director and chief executive of Tech Mahindra, said: This acquisition will make us a formidable player in the UK BFSI market with over 50 major financial institutions as clients.
"There is also a significant opportunity to cross-sell offerings between the companies and extend the platform to other markets.
"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."
Target Group has been acquired by Indian IT services giant Tech Mahindra
|Printer friendly Cite/link Email Feedback|
|Publication:||Western Mail (Cardiff, Wales)|
|Date:||May 31, 2016|
|Previous Article:||Carwyn shows a little humility after Labour's narrow victory; Chief reporter Martin Shipton notes the subtle changes in style shown by the First...|
|Next Article:||Investigation into minister's posts.|