On Monday, one of India’s leading tech consultants, Tech Mahindra, confirmed that it has agreed to acquire Com Tec Co IT Ltd (CTC) for 310 million euros (about Rs 2,628 crore) to comprise earnouts and synergy-linked incentives, among other things. Furthermore, Tech Mahindra will also acquire 25 percent equity for a total of 20 million euros in two technology firms managed by Com Tec Co IT Ltd.
Tech Mahindra London Limited, the company’s wholly-owned subsidiary, sanctioned the proposition to procure 100 percent equity shares in Com Tec Co IT Ltd and 25 percent equity shares in each of SWFT Technologies Ltd and SWFT Technologies Ltd,” Tech Mahindra stated in a regulatory filing.
Tech Mahindra believes that the acquisition of Com Tec Co IT Ltd will allow the firm to capitalize on potential industry disruption in the insurance industry, broaden its services to comprise high-end digital technology solutions for some of the biggest insurance, re-insurance, and financial services companies in the world, as well as extend its nearshore delivery presence.
What Is Com Tec Co IT Ltd?
Com Tec Co IT Ltd is an IT services and solutions company specializing in insurance and financial services. It has r&d centers in Latvia and Belarus and employs over 1,000 people worldwide. The procurement of Com Tec Co IT Ltd is the second-largest procurement that Tech Mahindra has undertaken, a decade after the firm invested in Satyam in April 2010, which remained huddled by the fraud allegations.
Technology firm Tech Mahindra further announced that it is putting an additional 20 million euros to procure a 25 percent stake in the SWFT and Surance platforms, which are both subsidiaries of the same parent organization as Com Tec Co IT Ltd its existing investments.
SWFT is an online consumer interaction platform that is delivered as a SaaS. It provides a variety of insurance sales and distribution features and is intended for use by online brokers, comparison websites, and insurers that want to engage with their consumers directly via digital channels. Cyber insurance for individuals is provided by Surance, an end-to-end service that concentrates on risk assessments, cybersecurity, and insurance plans for individuals.
“The insurance sector is now enduring a tremendous shift, which is being propelled by new developing business practices, which are being propelled by disruptive digital technologies,” said Vivek Agarwal, President – BFSI, HLS, and Corporate Development, Tech Mahindra.
In efforts to support insurers in advancing their migration to cloud-based platforms, we are focusing on enhancing our skills to provide end-to-end engineering with a powerful European nearshore footprint, as well as end-to-end engineering services. We are pleased to welcome the Com Tec Co IT Ltd team to the Tech Mahindra family, and we anticipate that this merger will result in substantial market and service line synergies.”
Our employees and the company will benefit massively from becoming a part of a global organization such as Tech Mahindra because it will give them immediate access to the global scale as well as immense developmental opportunities.” “According to Avraham Shaked, Co-Founder of Com Tec Co IT Ltd.