IT services major Tech Mahindra announced the acquistion of Com Tec Co IT Ltd (CTC) for 310 million euros including earn-outs and synergy linked payouts. CTC is an IT solution and service provider serving the insurance and financial services industries with development centres in Latvia and Belarus.
With this acquisition, Tech Mahindra will now expand its services onto the potential in the insurance sector, its offerings to high-end digital engineering services for some of the big insurance, re-insurance financial services organisations internationally and scale up its nearshore delivery presence.
Tech Mahindra is also investing an additive amount of 20 million euros, in SWFT and Surance, for about 25% stake in each of these two InsurTech ventures that are funded by the founding group similar to CTC’s.
SWFT is a SaaS-based digital customer engagement platform. It provides multiple functionalities for insurance sales & distribution and is customized for digital brokers, price comparison websites, and insurers wanting to approach their customers directly via digital channels.
Surance is an end-to-end personal cyber insurance solution that focuses on vulnerability assessment, cyber insurance coverage and cyber protection.
Vivek Agarwal, President- BFSL, HLS, and Corporate Development, Tech Mahindra, said, “The Insurance industry is currently experiencing a significant transformation driven by new arriving business models that are powered by disruptive digital technologies. In order to enable this digital transformation, we are investing in strengthening our capabilities to support insurers in accelerating their transition to cloud-based platforms and provide end-to-end engineering with a strong European nearshore presence”.
By its investments, Tech Mahindra boost-up its global leadership and exhibit its commitment to strengthening differentiated capabilities for expediting the digital transformation in the insurance, financial and re-insurance services.
Tech Mahindra shares that this acquisition is significant as it can scale its European presence with nearly 700 highly skilled IT professionals in modern technologies and processes.
Avraham Shaked, Co-Founder, CTC IT Ltd, said, ” Since our inception over 20 years ago, we have scaled sustainably entirely through customers’ recommendations and delivered award-winning strategic solutions for them in the insurance and reinsurance industry. 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 business.”