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Tech Mahindra bets big on insurance industry, buys CTC for over Rs 2,600 crore

The acquisition is also said to help the IT company, which is a part of the Mahindra Group, to scale up its European presence with over 700 highly skilled IT professionals in contemporary technologies

Published: 17th January 2022 07:30 PM  |   Last Updated: 17th January 2022 07:30 PM   |  A+A-

Tech Mahindra

Tech Mahindra. (File Photo | Reuters)

By Express News Service

BENGALURU: Tech Mahindra on Monday announced 100% acquisition of Com Tec Co IT (CTC) for €310 million (over Rs 2,600 crore) and is also investing €20 million in SWFT and Surance for a 25% ownership in each of these two InsurTech ventures funded by the same founding group as CTC.

The acquisition includes earnouts and synergy linked payouts. CTC is an IT solutions and service provider serving the insurance and financial services industries with development centres in Latvia and Belarus.

This will enable Tech Mahindra, a $5.1 billion organisation, to tap into the potential industry disruption in the insurance sector, expand its offerings to high-end digital engineering services for some of the largest insurance, re-insurance and financial services organisations globally and scale its nearshore delivery presence.

SWFT is a SaaS-based digital customer engagement platform. It offers multiple functionalities for insurance sales & distribution and is designed for digital brokers, price comparison websites, and insurers wanting to directly reach their customers through digital channels, the company said in a statement.

Surance is a personal cyber insurance solution that focuses on vulnerability assessment, cyber protection and cyber insurance coverage.

Vivek Agarwal, President - 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," he added.
 
The acquisition is also said to help the IT company, which is a part of the Mahindra Group, to scale up its European presence with over 700 highly skilled IT professionals in contemporary technologies and processes.



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