Tech Mahindra has acquired CTC (Com Tec Co IT), a provider of IT solutions and services to clients within the insurance and financial services sectors. The purchase price was 352 million dollars. A valuation based on an EBITDA multiple was not disclosed.
This is the 100th tech M&A deal ChannelE2E has covered so far in 2022. See more than 1,000 tech M&A deals for 2022, 2021 and 2020 listed here.
In related moves, Tech Mahindra has invested a total of $22.7 million to acquire 25 percent of these two InsurTech companies:
- SVFT, which is a SaaS-based digital customer engagement platform for insurance sales and distribution.
- Surance, which is a complete personal cyber insurance solution that focuses on vulnerability assessment, cyber protection and cyber insurance coverage.
Tech Mahindra acquires CTC: Offer details
Tech Mahindra is headquartered in Pune, India. The global IT services and software development company has 125,000 employees in 90 countries.
CTC has development centers in Latvia and Belarus. The CTC team specializes in program management, enterprise architecture, digital user experience design, business and systems analysis, digital engineering/digital platform development, cloud engineering, test automation, secure operations and DevSecOps. The acquisition will also help Tech Mahindra expand its European presence with over 700 IT professionals, the buyer said.
In a prepared statement on the deal, Vivek Agarwal, President, BFSI, HLS and Corporate Development, Tech Mahindra, said:
“The insurance industry is currently undergoing a significant transformation driven by emerging new business models powered by disruptive digital technologies.” 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. We welcome the CTC team to the Tech Mahindra family and expect to achieve significant market and service synergies through this combination.”
Added Avraham Shaked, Co-Founder of CTC:
“Since our establishment more than 20 years ago, we have grown sustainably through client referrals and delivered award-winning strategic solutions for them in the insurance and reinsurance industry.” Becoming part of a global entity like Tech Mahindra will give us immediate access to the global scale and create a tremendous opportunity for growth and development for our people and business.”
Tech Mahindra: Previous procurement of IT services
Tech Mahindra has been active on the M&A front. Previous deals include the acquisition of cloud consulting firm and Microsoft partner Brainscale for $28.8 million; Eventus Solutions Group for $44 million; and DevOps services provider DigitalOnUs for $120 million.