Tech Mahindra Ltd said it has agreed to buy Com Tec Co IT Ltd (CTC), a software solutions and service provider with development centres in Latvia and Belarus, for €310 million. The acquisition, which includes earnouts and synergy-linked payouts, will allow Tech Mahindra to expand its offerings to high-end digital engineering services for some of the largest insurance, re-insurance, and financial services clients in the world. Tech Mahindra is also investing a total of €20 million for a 25% ownership in SWFT and Surance platforms, 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. Surance, on the other hand, is a personal cyber insurance solution that helps in vulnerability assessment, cyber protection, and cyber insurance coverage.
The insurance industry is currently undergoing a significant transformation, which is driven by new emerging business models that are powered by disruptive digital technologies. Becoming a part of a global entity like Tech Mahindra will give us immediate access to global scale and create tremendous growth and development opportunity for our people and the business. Indian IT companies have of late embarked on an acquisition spree to expand their services offerings and consulting businesses amid surging demand. The CTC acquisition, for instance, is part of recent efforts by Tech Mahindra to scale its offshore operations. The company has now made about 10 acquisitions in under 12 months. Early last year, it acquired two companies—US-based Infostar LLC (Lodestone) and London-based We Make Websites Ltd, for $105 million and £9.4 million (around $13 million), respectively.