Tech Mahindra announced the acquisition of Com Tec Co IT (CTC) for €310 million including 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.
The acquisition will enable Tech Mahindra to tap onto 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 organizations globally and scale its nearshore delivery presence.
Tech Mahindra is also investing €20 million, in SWFT and Surance, for 25 percent stake in each of these two InsurTech ventures funded by the same founding group as CTC.
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.
Surance is an end-to-end personal cyber insurance solution that focuses on vulnerability assessment, cyber protection, and cyber insurance coverage.
Through these investments, Tech Mahindra will bolster its leadership and demonstrate its commitment in building differentiated capabilities for accelerating the digital transformation in the insurance, reinsurance, and financial services.
The acquisition will also help Tech Mahindra to scale its European presence with over 700 highly skilled IT professionals in contemporary technologies and processes.