TCS acquires Pramerica Services Prudential

TCS and the Newark, New Jersy-based life insurer signed the agreement for the Letterkenny, Ireland-based tech-services business. TCS will take on more than 1,500 Pramerica employees. For TCS, Pramerica will bring multi-year services contracts, strategy expertise and a development center in Ireland.

Shedding the operation is expected to help the insurer trim costs, as it aims for $750 million in savings by the end of 2023. For TCS, Pramerica will bring multi-year services contracts, strategy expertise and a development center in Ireland, the person said.

Tata Consultancy is Asia’s biggest exporter of software services with a market value of more than $130 billion. It has more than 450,000 employees around the world and generates $22 billion in annual revenue from selling software services and products to a range of customers including Citigroup Inc., BT Group Plc, Panasonic Corp. and Qantas Airways Ltd.Prudential Financial is re-pricing services and moving to products that are less rate-sensitive, the insurer said while announcing quarterly earnings last week. It put share buybacks on pause as the fallout of the coronavirus outbreak clouded business visibility. Chief Executive officer Charles Lowrey said at the time the company would explore potential asset sales and that deal-making would help reshape the business.