Tech Mahindra acquires Com Tec Co IT for €310m, invests in two insurtechs
Tech Mahindra has acquired Com Tec Co IT Ltd (CTC), a European IT solutions and service provider, for €310 million.
The consideration includes earnouts and synergy linked payouts.
Com Tec Co IT caters to the insurance and financial services industries. The company has development centres in Latvia as well as Belarus.
Avraham Shaked — Co-Founder of Com Tec Co IT 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 the business.”
Tech Mahindra said that the acquisition of Com Tec Co IT will enable it to tap into the possible industry disruption in the insurance industry. Besides, it will help the Indian IT services provider grow its offerings to high-end digital engineering services for insurance, reinsurance and financial services majors around the world, while scaling its presence in nearshore delivery.
The Indian IT firm also announced a cumulative investment of €20 million in SWFT and Surance, for a 25% stake in each of the two insurtech companies funded by the same founding group as Com Tec Co IT.
SWFT, which is a SaaS-based digital customer engagement platform, provides various functionalities for insurance sales and distribution. The platform is designed for digital brokers, insurers, and price comparison websites, which want to reach directly to their customers via digital channels.
On the other hand, Surance is designed to be an end-to-end personal cyber insurance solution to focus on vulnerability assessment, cyber protection, as well as cyber insurance coverage.
Vivek Agarwal — President – BFSI, HLS, and Corporate Development, Tech Mahindra, said: “The Insurance industry is currently undergoing a significant transformation which is driven by new emerging 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.”