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soared greater than 70% Monday on information that Thoma Bravo was taking the insurance-technology firm non-public in a $594 million deal.
Thoma Bravo is paying $13.10 a share, a 71% premium to Majesco’s closing price of $7.64 on Friday. Majesco’s board authorised the merger, which is anticipated to shut on or earlier than the top of 2020. Majesco shares (Ticker: MJCO) rose $5.44, or 71%, to $13.08 Monday afternoon. The
was up 0.6%.
Majesco, primarily based in Morristown, N.J., offers cloud-based insurance coverage software program that helps different insurers modernize and innovate. Clients embrace
(AON), Arch Insurance coverage Group and
(MET). CEO Adam Elster will proceed to guide the corporate after the sale, in accordance with an announcement.
Majesco is named an insurtech, which refers to firms that use know-how to upend the insurance coverage model. The insurtech sector has remained energetic regardless of the Covid-19 pandemic that has ravaged the U.S. economic system. The IPO of
(LMND), one of many extra well-known insurtechs, greater than doubled on its first day of buying and selling earlier this month. Oscar Well being raised $225 million in June.
Thoma Bravo declined to remark. Majesco couldn’t be reached for remark.
Majesco is the previous insurance coverage services and products enterprise of Mastek, in accordance with information and analysis agency PitchBook. In 2014, Mastek, primarily based in Mumbai, authorised the spinoff of the unit, calling it Majesco, that will commerce on the Bombay Stock Change and the New York Stock Change.
Greater than 200 firms in property-and-casualty, life insurance coverage and annuities, and group advantages use Majesco’s know-how. “Our decision was made with the best interests of our stockholders and we believe that the transaction will also benefit our 2,400+ employees and our more than 200 customers,” Elster stated within the assertion.
The Majesco sale is among the first public sale processes to be initiated and accomplished throughout the pandemic-induced recession.
The deal is the most recent for Thoma Bravo. This month, the technology-focused buyout store closed its funding in Exostar and bought SIGOS to Mobileum, which is backed by Audax Non-public Fairness. The agency shed a bit of its stake in
(DT) through a secondary sale final month. Thoma Bravo was additionally answerable for one of many hottest insurtech offers of 2019, when it bought iPipeline to
Roper Applied sciences
for $1.625 billion or roughly 20 instances earnings earlier than curiosity, taxes, depreciation, and amortization, or Ebitda. IPipline offers cloud-based software program for the life-insurance and financial-services trade.
“We see Majesco as a leader in helping its insurance customers get to the cloud faster, and modernize their internal and external facing systems,” A.J. Rohde, a Thoma Bravo companion, stated in an announcement.
Nomura Securities Worldwide offered monetary recommendation to Majesco, whereas Valerie Demont, Matt McCalip and David Rostowsky of Sheppard, Mullin, Richter & Hampton LLP, together with Khaitan & Co, acted as authorized advisors. Kirkland & Ellis LLP was the lawyer for Thoma Bravo.
Write to Luisa Beltran at email@example.com