Tech Mahindra has announced the 100% acquisition of Com Tec Co IT Ltd (CTC) for €310 million including earnouts and synergy linked payouts. CTC is an IT solutions and service provider for the insurance and financial services industries with development centres in Latvia and Belarus.
The acquisition enables Tech Mahindra to expand its offerings to high-end digital engineering services for insurance, re-insurance and financial services organisations globally and scale its nearshore delivery presence.
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Vivek Agarwal, President – BFSI, HLS, and Corporate Development, Tech Mahindra, 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.”
Tech Mahindra has also announced an investment of €20 million, to pick 25% ownership stake each in InsurTech ventures, SWFT and Surance. SWFT is a SaaS-based digital customer engagement platform and Surance is an end-to-end personal cyber insurance solution.
CTC’s expertise and experience complement Tech Mahindra’s offering to provide end-to-end digital engineering, AI, ML and DevSecOps capabilities. The acquisition will also help Tech Mahindra to scale its European presence with over 700 IT professionals in contemporary technologies and processes.
The acquisition underlines Tech Mahindra’s focus on digital growth, under the NXT.NOWTM framework, which is focused on leveraging next generation technologies.