Indian IT provider Tech Mahindra has agreed to purchase Target Group, a UK-based BPO and software provider to financial institutions, for £112m.

Tech Mahindra said that the deal will strengthen its BFSI practice by offering it access to IP and a platform that will support automation of end-to-end processes in the lending, investments and insurance market.

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"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," the Indian firm said.

Target will retain its existing brand following the acquisition. The company, which currently employs about 740 people, will also retain its existing management team who will continue to have complete operational responsibility.

The deal is anticipated to be completed in the second quarter of 2017, subject to regulatory approvals.

Tech Mahindra MD and CEO CP Gurnani 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 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."

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Target solutions are currently used by over 50 financial institutions worldwide including Goldman Sachs, Morgan Stanley, Credit Suisse, Barclays and Shawbrook Bank. Its fintech platform oversees over £24bn in assets, allowing clients to automate critical processing, servicing and administration of loans, as well as investments and insurance.