Info-tech

TCS buys Pramerica Ireland, takes over 1,400 employees

Our Bureau Mumbai November 12 | Updated on November 12, 2020 Published on November 12, 2020

K Krithivasan, President - BFSI, Tata Consultancy Services   -  Bijoy Ghosh

Close on the heels of acquiring Deutsche Bank’s technology services unit Postbank Systems, TCS has acquired Pramerica Systems Ireland, the technology services business of insurance giant Prudential Financial Inc (PFI).

While TCS did not disclose the financial details, the deal involves TCS rebadging or taking over all the 1,500 employees of Pramerica in Ireland. The deal is similar to its recent German acquisition, where TCS took over Deutsche Bank’s IT arm including its 1,400 employees.

As part of TCS’ new Global Delivery Centre in Ireland, they will continue to provide PFI with a range of business, digital and technology services, while also expanding TCS’ nearshore capabilities to provide tech services to other customers in Ireland, the UK, Europe and the US.

“This key investment deepens our relationship with PFI and gives us a new delivery capability in Ireland with specialised expertise that significantly strengthens our ability to meet the growth and transformation needs of our customers globally,” said K Krithivasan, President - BFSI, TCS.

Prudential has been a TCS client for long. In 2018, TCS expanded its agreement with M&G Prudential, the UK and European savings and investments business of Prudential.

Win-win deal

Industry watchers said TCS is leveraging its customer relationships to increase its footprint among its big customers. “TCS gets more revenue and more footprint locally. For customers like Prudential and Deutsche Bank it helps in restructuring and trimming their operations,” said Pareekh Jain, founder and lead analyst of EIIRTrend and Pareekh Consulting.

The acquisition could also strengthen TCS’ offerings in the BFSI sector. Revenue growth in the September quarter was led by BFSI, which grew 6.2 per cent on a quarterly basis.

Thursday’s deal was announced after market hours and TCS shares closed at ₹2,670, marginally down from the previous day’s close.

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Published on November 12, 2020
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