US-based private equity firm Thoma Bravo has increased its offer price for the cloud insurance software firm Majesco to $729m, which represent an increase of 22% compared to the initial deal.
Thoma Bravo will now pay for $16.00 per share to obtain all of Majesco’s outstanding shares. Last month, the company agreed to pay $13.10 in cash for each share, valuing the transaction at $594m.
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The move comes after an unsolicited bid was made for Majesco by an unaffiliated third party.
Majesco has signed the amended definitive agreement with Thoma. Following the closing of transaction, it will operate as a privately held company.
The proposed merger is subject to the receipt of approval from Majesco shareholders and the approval of the shareholders of Majesco’s parent company, Majesco Limited. The boards of directors of both Majesco’s and Majesco Limited’s have approved the merger.
Nomura Securities International acted as the financial advisor to Majesco while Sheppard, Mullin, Richter & Hampton and Khaitan & Co were the legal advisors to Majesco and Majesco Limited, respectively. Kirkland & Ellis and Trilegal acted as legal advisor to Thoma Bravo.
The transaction, which is subject regulatory approvals, is expected to be closed by the end of this year.
In April, Majesco completed the acquisition of InsPro Technologies, expanding its presence in the US life and annuity insurance market.
