The Insurance industry is currently undergoing a significant transformation which is driven by new emerging business models that are powered by disruptive digital technologies.
Indian information technology (IT) services company Tech Mahindra said on Monday it will acquire a 100 percent stake in Com Tec Co IT Ltd (CTC), an IT solutions and service provider with development centers in Latvia and Belarus, for €310 million (approx. Rs. 2620 crore).
As per Tech Mahindra the acquisition, which includes earnouts and synergy linked payouts, will enable it to expand its offerings to high-end digital engineering services for some of the largest insurance, re-insurance and financial services organizations in the world, scaling some of its offshoring efforts near India.
The CTC acquisition, is a part of it’s efforts by Tech Mahindra to scale and bolster its offshore operations. The company has now made about 10 capability-led acquisitions in under 12 months. Early last year, it acquired two companies – US-based Infostar LLC (Lodestone) and London-based We Make Websites Ltd (WMW), for $105 million and 9.4 million pounds (approx. $13 million) respectively.
Becoming a part of a global entity like Tech Mahindra will give us immediate access to global scale and create a tremendous growth and development opportunity for our people and the business,” said Avraham Shaked, Co-Founder of CTC.
Tech Mahindra is also investing a total of €20 million (approx. Rs. 1.69 crore), for a 25% ownership in SWFT and Surance platforms, which are two InsurTech ventures funded by CTC.
Tech Mahindra said the acquisition will help scale its European presence, with over 700 IT professionals in contemporary technologies and processes.
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