Tata Consultancy Services Ltd (TCS) has agreed to acqui-hire Ireland-based Pramerica Technology Services from insurance giant Prudential Financial Inc (PFI).
TCS, in a stock market disclosure, announced that the deal will see over
1,500 of Pramerica’s staff in Ireland being transferred to 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 - banking, financial services and insurance, TCS.
The transaction will also expand TCS’s nearshore capabilities to provide multifunctional digital services and solutions to other customers in Ireland, the UK, Europe and the US.
PFI will retain the Pramerica Ireland entity, which will continue to operate from Letterkenny in Ireland and will focus on providing regional business services, reporting under its global asset manager, PGIM.
Although TCS is India’s largest IT firm, it has grown mostly organically and has been a very conservative buyer. In contrast, other top IT firms such as Infosys Ltd, Wipro Ltd and HCL Technologies Ltd have struck many acquisitions overseas in recent years to grow operations or beef up their skills in certain domains or emerging technologies.
Early this week, TCS acquired Postbank Systems AG from Deutsche Bank AG in a deal that will ramp up the European business of India’s largest software services exporter.
The Tata Group company struck its biggest acquisition in 2008 when it bought Citigroup’s captive business process outsourcing unit in India for $505 million.