Tech Mahindra buys Com Tec, invests in two insurtech platforms
By siliconindia | Tuesday, 18 January 2022, 03:13 Hrs
Tech Mahindra Ltd. has acquired European IT firm Com Tec Co IT Ltd. for €310 million, consisting of earnouts and synergy-linked payouts.
CTC is an IT solutions and services provider catering to the insurance and financial services industries, with development centres in Latvia and Belarus.
Tech Mahindra said the acquisition will assist expand its offerings to high-end digital engineering services for some of the largest insurance, re-insurance and financial services organisations globally and scale its nearshore delivery presence.
“The insurance industry is currently undergoing a significant transformation driven by new emerging business models that are powered by disruptive digital technologies," Vivek Agarwal, president - BFSI, HLS, and corporate development at Tech Mahindra, said. "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."
CTC's expertise and experience in delivering marquee solutions for customers will complement Tech Mahindra's offering to provide end-to-end digital engineering, AI/ML and DevSecOps capabilities.
The acquisition will also help Tech Mahindra scale up its European presence with over 700 highly skilled IT professionals in contemporary technologies and processes, the company stated in a statement.
“Becoming a part of a global entity like Tech Mahindra will give us immediate access to global scale and create a tremendous growth and development opportunity for our people and the business," said Avraham Shaked, cofounder at Com Tec Co IT Ltd.
Tech Mahindra is also investing a cumulative amount of €20 million in SWFT and Surance, for a 25% ownership in each of these two insurtech ventures funded by the same founding group as CTC.
SWFT is a Software as a Service-based digital customer engagement platform. It offers multiple functionalities for insurance sales and distribution and is designed for digital brokers, price comparison websites, and insurers wanting to directly reach their customers through digital channels. Surance is an end-to-end personal cyber insurance solution that focuses on vulnerability assessment, cyber protection, and cyber insurance coverage.