Indian IT services group Tech Mahindra has agreed a sub-$30 million all-cash deal to acquire niche core banking consultancy Sofgen.
Geneva-based Sofgen has 450+ employees with 20+ Tier 1 client relationships serviced from 18 offices worldwide. It claims the second largest pool of Avaloq consultants in the world and is Temenos' most prolific partner.
CP Gurnani, MD & CEO, Tech Mahindra, says the acquisition will establish the firm as a prominent player in the private banking and wealth management segment.
"This acquisition gives us an opportunity to enhance our expertise to implement modernised core banking and transformation services capabilities," he says.
With Sofgen in the fold, he says, the Indian firm will now be partnering eight of the top ten global wealth managers and private banking companies.
The transaction, which will open a new $45 million revenue stream for Tech Mahindra, is expected to be completed in March.