Tech Mahindra has acquired CTC (Com Tec Co IT), an IT solutions and service provider for customers within the insurance and financial services verticals. The buyout price was US$352 million. A valuation based on EBITDA multiple was not disclosed.
This is technology M&A deal number 100 that ChannelE2E has covered so far in 2022. See more than 1,000 technology M&A deals for 2022, 2021 and 2020 listed here.
In related moves, Tech Mahindra invested a combined US$22.7 million to acquire 25 percent of these two InsurTech companies:
- SWFT, which is a SaaS-based digital customer engagement platform for insurance sales & distribution.
- Surance, which is an end-to-end personal cyber insurance solution that focuses on vulnerability assessment, cyber protection, and cyber insurance coverage.
Tech Mahindra Acquires CTC: Deal Details
Tech Mahindra is based in Pune, India. The global IT services and software development company has 125,000 employees across 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 system analysis, digital engineering/digital platform development, cloud engineering, test automation, secure operations and DevSecOps. The acquisition will also help Tech Mahindra to scale its European presence with over 700 IT professionals, the buyer said.
In a prepared statement about the deal, Vivek Agarwal, president of 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. We welcome the CTC team into the Tech Mahindra family, and we expect to achieve significant market and service line synergies through this combination.”
Added Avraham Shaked, co-founder of CTC:
“Since our inception over 20 years ago, we have scaled sustainably entirely through customers’ recommendations and delivered award-winning strategic solutions for them in the insurance and reinsurance industry. 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.”
Tech Mahindra: Previous IT Services Acquisitions
Tech Mahindra has been active on the M&A front. Earlier deals include acquiring cloud consulting firm and Microsoft partner Brainscale for US$28.8 million; Eventus Solutions Group for $44 million; and DevOps services provider DigitalOnUs for $120 million.