Tech Mahindra acquires European firm com tech company IT for ₹2,620 crore

The acquisition, which includes payouts linked to earnings and synergies, will allow Tech Mahindra to expand its offerings to high-end digital engineering services for some of the world’s largest insurance, reinsurance and financial services customers.

Tech Mahindra is investing a total of €20 million for 25% ownership in SWFT and Surens Platform, two InsurTech ventures funded by CTC.

SWFT is a software as a service, or SaaS-based digital customer engagement platform for digital brokers, price comparison websites and insurers.

Surens, on the other hand, is a personalized cyber insurance solution that helps in vulnerability assessment, cyber security and cyber insurance coverage.

Tech Mahindra said the acquisition will help it grow its European presence with over 700 IT professionals in contemporary technologies and processes.

Vivek Agarwal, President, Banking, Financial Services & Insurance, and Corporate Development at Tech Mahindra, said, “The insurance industry is currently undergoing a significant transformation, driven by newly emerging business models that are driven by disruptive digital technologies. ” To enable this digital transformation, we are investing in strengthening our capabilities to help insurers accelerate their transition to cloud-based platforms and end-to-end with a strong European proximity presence. -end engineering can be provided.”

“Being part of a global entity like Tech Mahindra will give us immediate access to the global stage and create tremendous growth and development opportunities for our people and business,” said Avram Shek, Co-Founder, CTC.

It was announced after the market opened. Tech Mahindra shares fall 1% 1,721.65 on the BSE, even though the benchmark Sensex rose 0.14% to 61,308.91.

Indian IT companies have recently embarked on an acquisition spree to expand their services offering and consulting businesses amid rising demand. For example, the CTC acquisition is part of Tech Mahindra’s recent efforts to scale up its offshore operations. The company has now made about 10 acquisitions in less than 12 months. Early last year, it acquired two companies—US-based Infostar LLC (Lodstone) and London-based We Make Websites Ltd, for $105 million and £9.4 million (about $13 million), respectively.

Last month, the company acquired Allyis India and Green Investments in a cash deal worth $125 million. Both firms hold companies for the Ellis Group, which has 600 employees and is based in the US. In the same month, Tech Mahindra said it had acquired US-based Activas Connect—a provider of at-home customer experience solutions—for a total of $62 million. The acquisition is expected to strengthen Tech Mahindra’s capabilities in emerging workplace solutions and strengthen its end-to-end customer experience portfolio.

Similarly, HCL Technologies announced the acquisition of 51% stake in German IT consulting company Gesellschaft fr Banksysteme GmbH (GBS). On January 14, HCL Technologies agreed to acquire Hungary-based data engineering services provider Starschema Ltd for $42.5 million. The move is expected to strengthen HCL’s capability in data-driven digital engineering and expand its presence in Central and Eastern Europe.

In March 2021, Wipro closed the largest acquisition of the company’s technology consultancy for the banking and financial services industry Capco for $1.45 billion. In December, it said it had acquired Edgill LLC for $230 million in cash.