Indian information technology (IT) services and consulting firm Tech Mahindra has acquired Com Tec Co IT (CTC) for €310m ($353.25m) including earnouts and synergy linked payouts.
With development centres in Latvia and Belarus, CTC offers IT solutions and services to the insurance and financial services industry.
Through CTC, Tech Mahindra seeks to tap the insurance space and expand its offerings to include digital engineering services for insurance, reinsurance and financial services firms.
Concurrently, Tech Mahindra will also invest an aggregate sum of €20m for a 25% stake in SWFT and Surance, the two insurtech ventures funded by CTC’s founding group .
SaaS-based digital customer engagement platform SWFT offers functionalities for insurance sales & distribution.
The SaaS platform is aimed at digital brokers, price comparison websites, and insurers looking to acquire customers via digital channels.
On the other hand, Surance is an end-to-end personal cyber insurance solution that offers vulnerability assessment, cyber protection, and cyber insurance coverage.
Tech Mahindra president of BFSI, HLS, and corporate development Vivek Agarwal 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.”
The acquisition, which brings 700 IT professionals, is also aimed at helping Tech Mahindra scale its European presence.
CTC co-founder Avraham Shaked 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.”
