TCS acquires BridgePoint Group in the US
29 November 2018
Tata Consultancy Services (TCS) on Wednesday announced the acquisition of BridgePoint Group, LLC, a US management consulting firm catering to the financial services industry, and specialising in retirement services, through the purchase of select company assets.
TCS, which currently partners with eight of the top 10 US banking, financial services and insurance institutions, and offers retirement services across the globe, said the acquisition augments TCS’ financial services and insurance domain knowledge, particularly in the US.
BridgePoint’s team of experts currently provides strategic insights and advisory services around growth, business agility, customer experience and technical transformation, TCS said in a release.
BridgePoint’s entire management team and key experts will join TCS, adding to the company’s ability to provide digital solutions that enhance sponsor and participant experience, and drive Business 4.0 transformations in the $1 trillion US retirement services market, TCS stated.
“The US retirement business is complex, so BridgePoint’s deep industry expertise and team of highly experienced consultants will enable TCS to develop a robust customer-focused retirement services business,” said Suresh Muthuswami, president and global head, BFSI platform, TCS. “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.”
“We are very excited about this transaction, being one that brings benefits to all parties,” said Barbara March, chief executive officer, BridgePoint. “Our customers require access to new and innovative solutions, capitalising on both BridgePoint’s broad understanding of the industry’s complexities and TCS’ expertise in enabling digital transformations. The portfolio of services offered by TCS will offer growth potential and superior service to retirement providers across the US.”
Bridgepoint is a woman-led business consulting firm that guides financial institutions through growth and change, navigating disruption and predicting trends. BridgePoint consultants hold deep industry knowledge alongside senior business acumen. This combination of insight and experience unlocks client potential, achieves exponential improvements in performance, and sustainable strategies for long-term growth.
TCS had suffered a few quarters of softness in BFSI which finally stabilised over Q2 (September quarter) with the management indicating revival in the US markets with signing of deals worth over $1.5 billion. BridgePoint’s entire management team and key experts will join TCS.
Earlier in the year, TCS announced a $2 billion deal with Transamerica, a provider of life insurance, retirement and investment solutions, to enable the transformation of administration of its US insurance and annuity business lines. TCS also has a $1.2 billion partnership with UK-based M&G Prudential aimed at digitally transforming business for its UK savings and retirement customers.
In the past three years, global rival Accenture has spent over $3.4 billion on M&As, of which around $1.7 billion were spent in 2017 alone. Majority of the 70-odd acquisitions that the NYSE-listed company has made so far were focused on digital and cloud-related businesses.