In a move to strengthen its offerings for the insurance industry, Tata Consultancy Services (TCS), a division of Tata Sons Limited, 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 the added value of TCS insurance practice, presents a unique value proposition for customers.
Commenting on the acquisition, S Ramadorai, chief executive officer, 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 organisation 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."
Satish Bangalore, managing director, PGS, said, "The acquisition by TCS will help PGS' 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 and 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 customisation and implementation experience in various leading insurance-technology products. Over the years, PGS has been providing these solutions to many insurance industry customers.
About Tata Consultancy Services (TCS)
Tata Consultancy Services (TCS) is a leading global IT services provider and was the first billion-dollar Indian IT services organisation by annual revenues. Since its inception in 1968, TCS has pioneered many of the significant developments in the Indian IT services industry, including the offshore delivery model for IT services.
It is a global organisation with offices in 32 countries and development centres in 10 countries. TCS offers a comprehensive range of IT services to its clients in diverse industries such as banking and financial services, insurance, manufacturing, telecommunications, retail and transportation. Its clients comprise of some of the worlds largest and well-known organisations. TCS has developed extensive experience in providing end-to-end IT services, integrating multiple technologies and delivering solutions in multiple geographies for its global clients. It is the largest Indian IT services organisation in terms of revenues as well as profits.
TCS is part of the Tata Group, which has a heritage of over 135 years as one of India's leading corporate groups. The Tata Group has interests in a diverse range of industries, and its combined sales reached approximately Rs542 billion (US$11.8 billion) in fiscal 2003.
About The Phoenix Companies Inc.
The Phoenix Companies Inc. is a leading provider of wealth management products and services to individuals and institutions in the United States. Through a variety of advisors and financial services firms, Phoenix helps the affluent and high net worth accumulate, preserve and transfer their wealth with an innovative portfolio of life insurance, annuity and asset management products and services. Phoenix has corporate offices in Hartford, Connecticut.