Investors cheer Tech Mahindra on approval for acquiring Target Group

Shares of Tech Mahindra on BSE index, surged by Rs 6 or 1.29% to Rs 471.70, after the company received FCA approval for acquiring Target Group. 

The stock opened at Rs 468 slightly higher from its previous closing of Rs 465.70. 

Nearly 82,677 shares were exchanged among investors. 

Tech Mahindra in a statement said,"The United Kingdom's financial conduct authorit (FCA) has confirmed that it has formally approved the acquisition of Target Group - a financial services outsourcing and software provider."

This move focuses on ensuring continuity and acceleration of the Group's ambitious growth strategy. 

Under this deal, Tech Mahindra is buying 100%  of the shares of Target Group. However, both the companies will remain a standalone entity keeping its existing brand and the entire management team.

Ian Larkin and Bill Alley, Co-Group CEOs of Target Group said," Our focus now will be on accelerating the next stage of our growth. In doing so, we look forward to working as part of Tech Mahindra to further develop our scale, market share and most importantly our solutions and services for clients."

The transaction was announced on May 27, 2016. Target Groups previous parent was Pollen Street Capital.