The US arm of IT solutions firm Majesco has inked a pact for acquisition of InsPro Technologies Corporation for USD 12 million (approximately Rs 85.7 crore).
The transaction, which is expected to close in April 2020, is structured as a cash for stock merger and is subject to customary closing conditions, including InsPro Technologies' stockholder approval, Majesco said in a filing to BSE.
Upon the closing of the merger, InsPro will become a direct wholly-owned subsidiary of Majesco, and a step-down subsidiary of the company.
"The company's US subsidiary Majesco has entered into a merger agreement... with InsPro Technologies Corporation, a US-based software leader in the life and annuity insurance market," Majesco Ltd said in a filing to BSE.
The acquisition will strengthen and expand Majesco's domain depth in voluntary, group, voluntary benefits, and worksite markets that will enable successful digital transformation journeys for insurers.
Majesco intends to finance the total consideration in the transaction of approximately USD 12 million, subject to adjustments (including for cash and certain debt of InsPro Technologies), through available cash.InsPro Technologies processes over 15 million policies for some of the leading blue chip insurance carriers and third party administrators in the United States, including several customers who process more than a million policies.