As per the deal terms, all the shareholders of Majesco will be paid $13.1 in cash per share upon closing

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Majesco agrees to be acquired by Thoma Bravo. (Credit: Tumisu from Pixabay)

Majesco, a cloud-based insurance software solutions provider, has agreed to be acquired by private equity firm Thoma Bravo for $594m in an all-cash deal that will make it a privately held company.

Based in New Jersey, Majesco is engaged in offering technology, expertise, and leadership for helping insurers in their digital business transformation.

The insurtech company is said to have worked with more than 200 insurance firms across the world dealing in property and casualty, life insurance and annuity, and group benefits. The company claims to have helped them in modernising, streamlining, or creating new business models with its solutions.

Thoma Bravo vice president Matt LoSardo said: “We’ve followed the impressive Majesco journey for many years. Digital transformation demand continues to grow as insurers look to modernize, and with our partnership we plan to accelerate product investment to support the needs of the insurance industry.”

Majesco’s solutions include CloudInsurer P&C Core Suite, CloudInsurer LifePlus Solutions, CloudInsurer L&A, and Group Core Suite among others.

The insurtech company employs more than 2,400 people.

As per the deal terms, all the shareholders of the US insurtech company will be paid $13.1 in cash per share upon closing.

Majesco CEO comments on the deal with Thoma Bravo

Majesco CEO Adam Elster said: “This transaction delivers significant cash value to our stockholders. Moreover, the added flexibility we will have as a private company, combined with the benefit of Thoma Bravo’s knowledge and domain expertise, can allow us to more effectively focus on our long-term investment and growth objectives, to the benefit of our employees, customers and partners.

“We are in alignment with Thoma Bravo on our strategic vision to help global insurers transition to the cloud.”

Upon completion of the deal, Majesco is likely to continue to operate under the leadership of the present CEO and the existing leadership team.

Closing of the deal is expected to occur by the end of this year, subject to receipt of regulatory approvals across the US and India along with the satisfaction of other customary conditions.

In April 2020, the insurtech company acquired InsPro Technologies, a US-based software company that caters to the life and annuity insurance market through its n insurance administration and marketing system.