Tech Mahindra, the software and services company today announced that it has signed a definitive agreement to acquire Geneva-based SOFGEN Holdings (SOFGEN), a consulting and services company with presence in private, wealth, commercial and retail banking solutions.
The transaction is expected to close by March 2015, subject to regulatory approvals. The financial details of the deal were not disclosed. But market sources confirmed that the deal is around $ 40 million (around Rs 248 crore).
SOFGEN has over 450 employees with 20 Tier 1 client relationships. Delivering solutions “in and around” core banking the company has the second largest pool of Avaloq consultants in the world and is Temenos’ most prolific partner.
“This acquisition gives us an opportunity to enhance our expertise to implement modernised core banking & transformation services capabilities. This milestone in the growth journey of Tech Mahindra will establish us as a significant player in the specialized & rapidly growing Private Banking and Wealth Management segment globally.” said CP Gurnani, MD & CEO, Tech Mahindra.
According to company officials the acquisition will give Tech Mahindra a pool of $ 300-500 million worth of business opportunity to tap into.
This is the sixth acquisition by the company since 2012. This will also strengthen the firms presence in the banking segment. Tech Mahindra has been trying to acquire in the banking segment for some time now.
“Bringing SOFGEN into the Tech Mahindra fold will give us access to new geographies, and a different magnitude of customer relationship.” said Alexander Dembitz, Chairman SOFGEN. “The highly experienced consultant work-force, coupled with the size and scale of Tech Mahindra will help us deliver compelling value to our prestigious customers globally.”
In 2014 alone the company had acquired four companies, the latest among them was US-based Lighbridge Communicatons Corporation (LCC) for $ 240 million. Acquisitions have been one of the strategy of the company to reach the $ 5 billion revenue target by Q3 of FY16.