India’s Tata Consultancy Services Ltd. agreed to acquire Pramerica Technology Services from insurance giant Prudential Financial
PFI will retain the Pramerica Ireland entity, which will continue to operate from Letterkenny and will provide regional business services.
Tata Consultancy Services is Asia’s biggest exporter of software services with a market value of more than $130 billion.
It has more than 450,000 employees around the world and generates $22 billion in annual revenue from selling software services and products to a range of customers including Citigroup Inc., BT Group Plc, Panasonic Corp. and Qantas Airways Ltd.
Prudential Financial, Inc. is an American Fortune Global 500 and Fortune 500 company whose subsidiaries provide insurance, investment management, and other financial products and services to both retail and institutional customers throughout the United States and in over 40 other countries.
Pramerica provides a range of integrated business and technology services to its parent company, Prudential Financial, Inc., one of the world’s largest financial services institutions.
What will be acquired?
Under the deal, the company acquired 100% of the shares and its 1,500 employees.
The acquisition would also help TCS expand its presence in Germany and the broader European region.
What will be the benefit?
The deal deepens the Indian IT giant’s relationship with a key client and expands its foothold in Ireland and Europe, said K. Krithivasan, TCS’s president of banking, financial services and insurance.
Pramerica staff will continue to provide a range of digital and technology services to Prudential.
The transaction is subject to completion of regulatory approvals.
Second deal of the month
Just this week, Deutsche Bank agreed to sell its technology services unit, Postbank Systems AG, to TCS by the year end.
Comment from TCS
This key investment deepens our relationship with PFI and gives us a new delivery capability in Ireland with specialized expertise, that significantly strengthens our ability to meet the growth and transformation needs of our customers globally,” said K Krithivasan, President
Comment from PFI
“This transaction further expands our relationship with TCS, while advancing PFI’s ongoing transformation process and providing exciting growth opportunities for Pramerica Ireland employees and the Letterkenny region”, Stacey Goodman, Chief Information Officer.