IT services major Tech Mahindra on Friday announced its acquisition of Geneva-based SOFGEN Holdings, a niche consulting and services company specialising in private, wealth, commercial and retail banking solutions.
The transaction is expected to close by March 2015, subject to regulatory approvals. Though the company declined to divulge details, sources aware of the development said it was a “sub-$40 million, all-cash deal”.
“This acquisition gives us an opportunity to enhance our expertise to implement modernised core banking and transformation services capabilities. This milestone in the growth journey of Tech Mahindra will establish us as a significant player in the specialised and rapidly growing private banking and wealth management segment globally,” said CP Gurnani, MD and CEO, Tech Mahindra.
SOFGEN has over 450 employees and 20 tier-I client relationships, delivering solutions “in and around” core banking. “Bringing SOFGEN into the Tech Mahindra fold will give us access to new geographies,” said Alexander Dembitz, chairman, SOFGEN.
Tech Mahindra, in its bid to become a $5-billion business, has pursued acquisitions quite aggressively of late, buying three companies in the last 12 months. In February, Tech Mahindra acquired the IT services arm of Germany-based chemical company BASF Business Services Holding for an undisclosed sum, followed by a 75% stake buy in US-based big data start-up FixStream Networks for $10 million in April. In November, the IT services provider acquired US-based global telecom network services provider Lightbridge Communications for $240 million, making its biggest ever acquisition.