Insurance systems developers Majesco and Cover-All merge
In the growing market of core insurance systems and services, two prominent brands, Majesco and Cover-All, have agreed to a merger. The companies, which provide platforms for policy, claims, billing, distribution management and intelligence needs, could increase their annual revenue to $100 million.
As a result of the merger, Mastek (owner of Majesco) shares surged by 20 percent, marking a fruitful beginning to the new partnership. By generating market interest and expanding their corporate footprint, the companies will have resources to compete like never before. Majesco founder Ketan Mehta will take the reins of the merged company, under the banner of Majesco, reports the Insurance Journal. Manish Shah, formerly the president and CEO of Cover-All, will assume an executive vice president position.
The merger stands as an example of companies who make entry into longstanding industries like insurance, on the strength of tech products that help streamline processes and take data online. Together, their customer base could grow to 150 major insurance providers around the world, a global roster that creates a whole even greater than the sum of the parts.
Executives reached the stipulations of the technology merger through a 100 percent stock-for-stock transaction, according to Business Standard. Until the merger is finalized early next year, the companies will continue to operate on an independent basis while formal restructuring and integration strategy are decided upon.
One of the biggest hurdles to global tech companies facing a merger is reorganization of resources across borders and customer bases. When the ink is dry on the deal, the long process of integration has sometimes only just begun. Continuous review and appraisal of practices and standards helps bridge transitions seamlessly, accounting for needs and objectives of both companies to achieve new, common goals.