Thoma Bravo to acquire insurtech company Majesco for $594m

Thoma Bravo acquisition of Majesco : Private equity firm Thoma Bravo has signed a $594 million deal to acquire US insurtech company Majesco, which claims to help insurers achieve digital business transformation through its cloud-based insurance software solutions.

The acquisition by Thoma Bravo will help the New Jersey-based insurance technology provider become a privately held company. Shareholders of the insurtech company are being offered a price of $13.10 in cash per share for the acquisition.

Majesco calls itself as a strategic partner for insurers, helping them in modernizing, innovating, and connecting to build the future of their business and the industry rapidly and at scale by providing them a combination of its technology, expertise, and leadership.

It claims to have helped over 200 insurance companies in various parts of the world, who are engaged in property and casualty insurance, group benefits, life insurance and annuity, worker compensation in their digital transformation journey.

Commenting on Thoma Bravo acquisition of Majesco, Matt LoSardo – Thoma Bravo Vice President said: “We’ve followed the impressive Majesco journey for many years. Digital transformation demand continues to grow as insurers look to modernize, and with our partnership we plan to accelerate product investment to support the needs of the insurance industry.”

Majesco, which has a workforce of over 2,400 people, has developed insurance technology solutions such as CloudInsurer P&C Core Suite, CloudInsurer L&A, Group Core Suite, and CloudInsurer LifePlus Solutions.

Following the completion of the acquisition, the insurance technology company is expected to operate under the leadership of its CEO Adam Elster and its present leadership team.

Adam Elster, commenting on Thoma Bravo acquisition of Majesco, said: “Our decision was made with the best interests of our stockholders and we believe that the transaction will also benefit our 2,400+ employees and our more than 200 customers.

“We are extremely excited to partner with Thoma Bravo, a firm with an established track record of working with companies transitioning to the cloud. This transaction delivers significant cash value to our stockholders. Moreover, the added flexibility we will have as a private company, combined with the benefit of Thoma Bravo’s knowledge and domain expertise, can allow us to more effectively focus on our long-term investment and growth objectives, to the benefit of our employees, customers and partners.

“We are in alignment with Thoma Bravo on our strategic vision to help global insurers transition to the cloud.”

For Majesco, the financial advisor for the transaction is Nomura Securities International, while Sheppard, Mullin, Richter & Hampton is the legal advisor. On the other hand, Kirkland & Ellis is serving as legal advisor to Thoma Bravo.

Thoma Bravo acquisition of Majesco will be subject to regulatory approvals in the US and India along with the meeting of satisfaction of preceding customary conditions, following which it is expected to be wrapped up by the year-end.