Target Group accepts £112m buyout
Target Group will be acquired by global software company Tech Mahindra for £112m subject to Financial Conduct Authority approval.
The management team including group chief executives Ian Larkin and Bill Alley will remain at the business.
Target Group, which employs around 800 people, said this represents the start of a new exciting phase for the business after four years of expansion under the ownership of Pollen Street Capital.
Paddy Byrne, chairman of Target Group, 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 banking, financial services and insurance markets.”
CP Gurnani, managing director and chief executive of Tech Mahindra, said: “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 [banking, financial services and insurance] 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.”