Tech M acquires Europe based company CTC for €300 mnTECHM - 1189 Change: -13.80 (-1.15 %)
News: Tech M informed the stock exchanges that it has approved the proposal to acquire 100% stake in Com Tec Co Ltd (CTC) for €310 mn( 3.8x price to CY21 sales), out of which €210 mn will be paid upfront and rest €100 mn will be paid over the next four years linked to synergy achievements. The company is also acquiring 25% stake in two platforms owned by CTC namely SWIFT and SURANCE for €20 mn, with an option to acquire further 20% stake in the platforms over the next two years. CTC specialises in developments of product in insurance and reinsurance industry. SWIFT is SaaS-based digital customer engagement platform. It offers multiple functionalities for insurance sales & distribution while SURANCE is an end-to-end personal cyber insurance solution that focuses on vulnerability assessment, cyber protection, and cyber insurance coverage.
Views: The acquisition will enable Tech Mahindra to tap the potential industry disruption in the insurance sector, expand its offerings to high-end digital engineering services for some of the largest insurance, re-insurance and financial services organizations globally and scale its nearshore delivery presence. CTC revenue grew ~40% CAGR over CY18-20 and it has industry leading EBIT margins and the transaction will be EPS accretive as per management.