Tata Consultancy Services (TCS), the country’s largest IT services firm, has acquired the business of BridgePoint Group, a US management consulting firm.

BridgePoint Group caters to the financial services industry and specialises in retirement products through the purchase of select company assets. While TCS, at present, partners top players in the US to offer banking, financial services and insurance products, it offers retirement services globally as well.

It is expected that the acquisition will boost its financial services and insurance domain knowledge, particularly in the area of US retirement services. BridgePoint provides strategic insights and advisory services around growth, business agility, customer experience and technical transformation.

TCS, however, did not disclose the size of the transaction. A press statement on Wednesday said BridgePoint’s entire management team and key experts will join the Tata group firm.

“Their deep customer relationships and significant industry knowledge adds to the ability of TCS to provide digital solutions that enhance participant experience and drive Business 4.0 transformations in the $1-trillion US retirement services market,” the company said.

While the US retirement business is complex, Suresh Muthuswami, president & global head (BFSI platform) of TCS, feels BridgePoint’s strong industry expertise and team of experienced consultants will enable TCS to develop a robust customer-focused retirement services business.

“This move underscores our long-term commitment to this industry, enhancing our ability to provide end-to-end engagements, from strategic consulting to servicing of retirement assets. We welcome the BridgePoint team to TCS,” he added.

Commenting on the deal, Barbara March, chief executive officer of BridgePoint, said its customers require access to new and innovative solutions.

She pointed out that they will benefit by BridgePoint’s broad understanding of the industry’s complexities and the expertise of TCS in enabling digital transformations.

TCS shares ended higher on the bourses on Wednesday. On the BSE, the TCS scrip settled with gains of almost 5 per cent or Rs 88.20 at Rs 1976.55 with around 7.79 lakh shares being transacted.

The scrip which has a market cap of Rs 7,41,678 crore has been under pressure in recent times on account of the rupee appreciation against the US dollar which is expected to affect the margins of IT services companies.

“The portfolio of services offered by TCS will offer growth potential and superior service to retirement providers across the US,” March SAID.

During the second quarter ended September 30, the banking, financial services & insurance (BFSI) vertical continued its growth trajectory from the preceding three months to post a rise of 6.1 per cent over last year.

BRIDGE THE GAP

• BridgePoint Group caters to the financial services industry and specialises in retirement products through the purchase of select company assets
  
• BridgePoint’s entire management team and experts will join TCS