In July 2020, Majesco signed a $594m all-cash deal to be acquired by Thoma Bravo

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Thoma Bravo, Majesco agree to revised deal. (Credit: aymane jdidi from Pixabay)

Private equity firm Thoma Bravo has agreed to acquire US insurance technology company Majesco for an increased consideration of $729m.

Last month, the parties signed a $594m all-cash deal under which Thoma Bravo agreed to acquire the insurtech company for $13.1 per share.

The deal has been now amended under which the private equity firm will offer $16 per share with the increase in consideration in response to Majesco’s receipt of an “unsolicited” acquisition offer from an unaffiliated third party.

Upon completion of the deal, Majesco will operate as a privately held firm. The revised deal has been unanimously approved by the boards of directors of Majesco’s and its holding company, who have recommend their respective shareholders to approve the merger with Thoma Bravo.

Majesco expects the deal to close by the end of this year

Majesco stated: “Completion of the merger is not subject to a financing condition but is subject to the accuracy of the representations and warranties, performance of the covenants and other agreements included in the Merger Agreement and customary closing conditions for a transaction of this type, including regulatory approvals in the US and India.

“Assuming satisfaction of those conditions, the Company expects the merger to close by the end of 2020.”

Nomura Securities International has been serving as financial advisor to the insurtech company. On the other hand, Sheppard, Mullin, Richter & Hampton and Khaitan & Co are the respective legal advisors to Majesco and its holding company.

For Thoma Bravo, Kirkland & Ellis and Trilegal has been serving as the legal advisor for the transaction.

Headquartered in New Jersey, Majesco is focused on providing technology, expertise, and leadership for helping insurers to digitally transform their business.

The insurtech company is claimed to have worked with over 200 insurance companies across the world, who are engaged in property and casualty, life insurance and annuity, and group benefits. The company is said to have aided them in modernising, optimising, or creating new business models by integrating its solutions.

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