Mumbai: IT solutions vendor Mastek Ltd has bought Systems Task Group (STG) International a provider of enterprise solutions for the property and casualty (P&C) insurance industry in an all-cash consideration of $29 million (Rs 116 crore). The take over will enable Mastek, which has a strong presence in the life and annuity segment of the insurance business, to gain a foothold in the P&C insurance space. As per Celent Research, IT spending by P&C insurers is expected to cross $20 billion by 2010 from $16 billion in 2007. STG''s contribution will be reflected in Mastek''s consolidated performance partly in fiscal 2007-08 and fully in fiscal 2008-09.
Showing posts with label Mastek. Show all posts
Showing posts with label Mastek. Show all posts
Tuesday, March 11, 2008
Monday, March 10, 2008
Mastek Makes Second Insurance Acquisition In USA
Mastek Ltd on March 08, 2008 has announced the acquisition of Systems Task Group (STG) International Ltd, an IP-based enterprise solutions provider to the North American property & casualty (P&C) insurance industry. This acquisition is the second such initiative by Mastek during the current financial year, and follows the acquisition of another insurance-focused IT Company Vector Insurance Services in July 2007. Under the terms of the agreement, Masteks wholly owned US subsidiary MajescoMastek will hold 100% equity stake in STG. The consideration for this acquisition will be paid partly in cash and partly by way of future cash earn outs. Following this transaction, STG will operate as STGMastek.
Headquartered in New York with a fully integrated offshore competency centre in Mumbai (India), STG leverages its enterprise applications Renaissance suite and ParadigmASP to provide the full spectrum of solutions and services to customers in the North American P&C insurance industry in the areas of policy and billing administration, claims processing, and point-of-sales administration, The Company has about 350 employees with significant P&C insurance domain expertise and a robust customer base that includes over 35 small and mid-sized American insurance carriers.
Keeping in view that Mastek already has an intellectual property (Elixir™) and a growing market presence in the life & annuity segment that was accelerated by the acquisition of the US-based Vector Insurance Services (now VectorMastek) in July 2007, this latest transaction in the non-life segment is expected to noticeably strengthen Masteks market position and expand the opportunity pipeline in the overall insurance vertical.
Headquartered in New York with a fully integrated offshore competency centre in Mumbai (India), STG leverages its enterprise applications Renaissance suite and ParadigmASP to provide the full spectrum of solutions and services to customers in the North American P&C insurance industry in the areas of policy and billing administration, claims processing, and point-of-sales administration, The Company has about 350 employees with significant P&C insurance domain expertise and a robust customer base that includes over 35 small and mid-sized American insurance carriers.
Keeping in view that Mastek already has an intellectual property (Elixir™) and a growing market presence in the life & annuity segment that was accelerated by the acquisition of the US-based Vector Insurance Services (now VectorMastek) in July 2007, this latest transaction in the non-life segment is expected to noticeably strengthen Masteks market position and expand the opportunity pipeline in the overall insurance vertical.
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