A day after Tech Mahindra declared their acquisition with Com Tec Co IT Ltd for €310 million, the companies shares rose by 1% in an early trade on NSE & BSE.
Tech Mahindra through its wholly-owned subsidiary viz., Tech Mahindra London Ltd endorsed the proposal to inherit 100% equity shares in Com Tec Co IT and 25% equity shares each in SWFT Technologies Ltd and Surance Ltd. Tech Mahindra will pay total premium of up to €310 million including earnouts for the CTC acquisition.
The acquisition will authorize Tech Mahindra to avail itself to the potential industry interruption in the Insurance sector, expand its indulgences to high-end digital engineering services for some of the largest insurance, re-insurance, and financial services organisations globally and escalate 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.