IT major Tech Mahindra on Monday announced buying 100 per cent stake in Europe-based com tech company IT (CTC) and 25 per cent stake in two Insurtech platforms for a total of €330 million (about Rs 2,800 crore). The company said the acquisition will strengthen its digital engineering and insurance technology businesses.
“This is our biggest capital outlay commitment to grow our digital engineering and insurance technology business in recent times,” said Vivek Agarwal, Tech Mahindra President, BFSI, HLS and Corporate Development. The acquisition of CTC is the second largest acquisition. The company has been created after the scam-hit Satyam in April 2010. Tech Mahindra had invested USD 500 million in Satyam to buy 42 per cent at an enterprise valuation of USD 1.1 billion.
Tech Mahindra acquired Com Tec Co IT (CTC) for EUR 310 million (approximately Rs 2,628 crore), which includes earnings and synergies payments. According to Tech Mahindra’s regulatory filing, CTC had revenues of 71.3 million euros in 2020 and has reported a total revenue of 58.8 million euros in the nine months ended September 2021.
The total workforce of around 720 employees at CTC will become part of Tech Mahindra. Tech Mahindra is investing a further 20 million euros to acquire 25 percent ownership in SWFT Technologies and Surens Platform – which are part of the same founding group as CTC.
“The insurance industry is currently undergoing a significant digital transformation driven by newly emerging business models that are driven by disruptive digital technologies. The new models that will emerge will be powered by disruptive technology. Through these investments in CTC, SWFT and Surens, we aim to play a key role in the digital transformation of the industry.”
He said Tech Mahindra has acquired 25 per cent stake in SWFT and Surens and there is an option to increase it further. “From a customer location perspective, these businesses primarily serve customers in Europe and North America. Some smaller businesses in Asia. From a delivery location perspective, these acquisitions will expand our current presence in Belarus and Latvia,” said Agarwal. he said.
CTC is an IT solutions and services provider serving the insurance and financial services industries with development centers in Latvia and Belarus. Surens is an end-to-end personal cyber insurance solution focused on vulnerability assessment, cyber security and cyber insurance coverage.
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