Majesco (formerly MajescoMastek), a wholly-owned subsidiary of Indian IT solutions firm Mastek, has entered into a definitive merger agreement with Cover-All Technologies Inc, resulting in the creation of an entity with $100 million in annual revenue.
NYSE-listed Cover-All Technologies is an insurance software company based in Morristown, NJ.
This would be a 100-per cent stock-for-stock transaction, pursuant to which Cover-All's stockholders will receive 16.5-per cent of the outstanding shares of common stock of the combined company. The combined entity will retain the 'Majesco' brand globally, Mastek said in a statement.
''At Majesco, we take a customer-centric approach to enabling technology transformation for our customers. We maintain a laser sharp focus on meeting the needs of just one industry – insurance, and are making investments that add capability and capacity to serve our customers in meeting their growth objectives,'' said Ketan Mehta, CEO and founder of Majesco, who will serve as president and CEO of the combined entity, Majesco.
''Cover-All Technologies is a well-known and respected insurance software company with in-depth knowledge of commercial ISO lines,'' Mehta added.
The decision to merge the two businesses is the latest step in the execution of Majesco's aggressive growth strategy to consolidate its global insurance business under a single and separate entity.
The combined company, Majesco, is expected to have over $100 million in estimated annual revenue, more than 150 insurance customers in all tiers worldwide and core software suite serving all tiers in its operating markets - the Americas, Europe and Asia-Pacific among others.
"Majesco, with its recent reorganisation of insurance businesses, is a rapidly growing insurance software and services company. Cover-All and Majesco have highly complementary core strengths, including a broad product portfolio, passionate people committed to world-class software and impactful customer services exclusively focused on insurance industry,'' said Manish Shah, Cover-All's President and CEO.
Last week Majesco signed an agreement to acquire of Agile Technologies, an IT services company focused on the insurance industry. The acquisition, financial terms of which were not disclosed, is expected to close in January 2015 (See: Mastek subsidiary Majesco to acquire Agile).