Tech Mahindra takes over Pollen Street's Target Group in £112m deal

Welsh financial services outsourcing and software provider Target Group has been bought by India-headquartered multinational Tech Mahindra in a deal valuing the business at £112m.

Target has undergone four years of expansion under the ownership of Pollen Street Capital, and currently employs about 800 people.

Tech Mahindra said the buyout would strengthen its banking, financial services and insurance practice through access to an IP and platform which helps automate end-to-end processes in the lending, investments and insurance market.

Target chairman Paddy Byrne 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 the $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 BFSI markets.”

CP Gurnani, MD & CEO of Tech Mahindra, added, “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.”

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