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In a move to strengthen its offerings for the insurance industry, Tata Consultancy Services (TCS), a division of Tata Sons Ltd, has signed a definitive agreement to acquire, subject to regulatory approvals, Phoenix Global Solutions (PGS) from The Phoenix Companies, Inc. (NYSE: PNX). PGS is a provider of technology-business solutions to insurance companies across the globe.
The insurance-domain consulting expertise of PGS, which operates from a 6.6 acre campus in Bangalore, with added value of TCS' insurance practice, presents a unique value proposition for customers.
Commenting on the acquisition, Mr. S. Ramadorai, CEO, Tata Consultancy Services, said, "Our growth strategy has been a combination of organic and inorganic growth. This acquisition is in line with a focus to consolidate on the strengths developed by TCS over a period of time in the financial industry segments. This acquisition will give us an impetus to attract new customers and help grow our existing customers."
"This sale is consistent with our strategy to focus only on our core life, annuity and asset management manufacturing businesses," said Dona D. Young, Phoenix's Chairman, President and Chief Executive Officer. "TCS is a fine organization and is exactly the kind of company we sought to buy our subsidiary. We are pleased that TCS will provide us with similar services to those currently offered by PGS and will offer PGS employees the opportunity to grow with a large and dedicated technology firm."
Mr. Satish Bangalore, Managing Director, Phoenix Global Solutions said, "The acquisition by TCS will help PGS's growth plans, market penetration strategies and consolidation of its insurance offerings. Our insurance domain competency combined with the partner strength, will act as value proposition to insurance customers."
Established in 1996, PGS is a wholly owned subsidiary of The Phoenix Companies Inc., - a leader in wealth management for more than 150 years with approximately US $ 47 billion in third party assets under management. PGS is a Total Transaction Service Provider (T2SP), providing Insurance solutions that encompass Information Technology, Business Process Outsourcing & Customer Care services to support business transactions. PGS also provides Transaction Processing support such as New Business Processing, Policy Administration Support and Distribution Administration Solutions. PGS has customization and implementation experience in various leading Insurance-technology products. Over the years, PGS has been providing these solutions to many insurance industry customers.