£112 million takeover for Target Group approved

The £112m takeover of Chester-based financial services outsourcing and software provider Target Group can go ahead after it was granted approval by the Financial Conduct Authority (FCA).

Indian multinational Tech Mahindra is behind the aquisition, and plans were revealed in May 2016. However, the deal was subject to the approval of the regulator which has now been given.

Target Group offers business process outsourcing and develops software for retail and investment banks, insurers and finance brokers, enabling them to manage their accounts. Barclays, Credit Suisse and Santander are among the company’s clients.

The existing management team, led by co-group chief executives Ian Larkin and Bill Alley, will remain in place following the takeover to ensure continuity and acceleration of the current strategy.

The co-chief executives said: “We would like to thank Pollen Street Capital for its four years of support and assistance in moving the business forward.

“Our focus now will be on accelerating the next stage of our growth. In doing so, we look forward to working as part of Tech Mahindra to further develop our scale, market share, and, most importantly, our solutions and services for clients.”

Target Group reported EBITDA of £6.8m on turnover of £51m in its accounts for the 2015 financial year.

Headquartered in Cardiff, the group also has offices in Chester, Newport, Cirencester, Auckland (NZ) and Melbourne (Australia).