Majesco to Acquire Vitech, Expanding its Presence in Insurance Technology
In Morristown, New Jersey, Majesco, known for its innovative cloud-native and AI-native software solutions in the insurance sector, has announced its intention to acquire Vitech. Vitech specializes in cloud-native software for pension and benefits management. This deal solidifies Majesco’s position as a leader in the cloud-native and AI-native technologies for group benefits, retirement, and pension sectors. With this acquisition, Majesco will serve over 375 clients, including more than 100 in life and annuity, and over 275 in property and casualty insurance. The combined offerings are expected to provide enhanced value to insurers who operate across both markets, considering that over 40% of such companies engage in both sectors.
Majesco operates under Thoma Bravo, a notable software investment firm, while Vitech is backed by CVC, a prominent private market investment entity. As part of the acquisition agreement, CVC Funds will acquire a minority stake in Majesco to further promote growth and innovation in the newly merged company.
“We’re thrilled to unite the leading technological solutions in the Group Benefits and Retirement & Pension sectors,” said Majesco’s CEO, Adam Elster. “This integration will allow us to assist the L&AH sector in rapidly advancing their growth and operational strategies.” He added that, combined with their solutions for Property and Casualty Insurance, they aim to deliver top-tier, intelligent solutions that are reshaping the insurance landscape.
Vitech’s CEO, James Ousley, commented on the deal, emphasizing that the industry is undergoing notable changes and several opportunities. He expressed enthusiasm for the complementary expertise and insights that the merged teams will bring, which are crucial for the growth of insurance businesses.
The merger combines a variety of leading L&AH solutions, including Intelligent Core, IDAM, Intelligent Sales, and various digital tools that cater to the marketplace in the US, Canada, and the UK. With Majesco’s AI capabilities at the forefront, the expanded product suite is designed to enhance growth, boost efficiency, and adapt to evolving market conditions.
Tom Scales, Principal Analyst at Celent, highlighted the acquisition as a significant advancement for the insurance industry. He noted that the combination of Majesco’s AI advancements with Vitech’s established presence in pensions and retirement will be beneficial for the market as a whole.
Through this acquisition, Majesco seeks to enhance value for shared customers by leveraging financial strength and deep expertise, essential for sustained innovation and competitiveness in a rapidly changing marketplace. As AI continues to reshape the insurance landscape, the partnership aims to provide solutions that meet the industry’s evolving demands.
AJ Rohde from Thoma Bravo praised Majesco’s significant innovation and leadership, reiterating their commitment to the insurance sector and belief in the potential of the merger to drive growth and customer success.
Aaron Dupuis from CVC also expressed optimism regarding the acquisition, stating that Majesco’s vision and innovative spirit would greatly benefit Vitech’s client base as well as the solutions offered.
Amid rising operational costs within property and casualty and L&AH insurance sectors, Majesco is poised to help companies navigate through these challenges by providing advanced technology, AI tools, and innovative strategies that enhance business operations and product offerings.
Kirkland & Ellis LLP is advising Majesco and Thoma Bravo legally, while White & Case LLP is assisting CVC. RBC Capital Markets is the financial advisor to Vitech.
