Exaxe has become a direct subsidiary of Majesco, USA and step-down subsidiary of the company, the cloud insurance technology services provider said.
Majesco shares gained over a percent in morning on Wednesday after its US subsidiary acquired Ireland-based company that provides cloud software services.
"This acquisition will strengthen and expand Majesco's software offerings in EMEA for the individual life, pensions and wealth management market while complementing Majesco’s software and Group focused customer base in the UK," the company said.
Majesco, USA has entered into a Share Purchase Agreement for acquisition of all the issued share capital of Exaxe Holdings Limited, a private limited company incorporated in Ireland.
Majesco said its subsidiary consummated the purchase of 90 percent of Exaxe's securities and agreed to purchase the remaining 10 percent of its securities on August 1, 2019.
The US company made upfront payment of 6.39 million euro to sellers. In addition, Majesco, USA agreed to make an additional payment to the sellers of 0.72 million euro for the rest of 10 percent equity on August 1.
"With this acquisition, we will focus on bringing continuous innovation to our customers, helping them take advantage of the market opportunities in insurance with cloud and digital transformation," Adam Elster, CEO of Majesco said.
Accordingly, Exaxe has become a direct subsidiary of Majesco, USA and step-down subsidiary of the company, the cloud insurance technology services provider said.
It said the subsidiary deferred consideration payment up to 4.50 million euro, which will be based on achievement of adjusted EBITDA for calendar years 2019, 2020 & 2021.
Exaxe is a leading SaaS solutions provider with strong digital and robo-advice capabilities providing full lifecycle support for life, pension & wealth management products. It has presence in Ireland and United Kingdom (UK).At 09:45 hours IST, the stock was quoting at Rs 475.50, up Rs 4.10, or 0.87 percent on the BSE.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.