MAHWAH – Majesco, a leading cloud-native software provider for the insurance industry, has agreed to acquire Vitech Systems Group, a move that consolidates two key players in the insurance and retirement benefits technology sector.
The acquisition, backed by Majesco’s private equity owner Thoma Bravo and a new minority investment from Vitech’s owner, CVC Capital Partners, aims to create a dominant provider of cloud-native and AI-driven core systems for the group & benefits and retirement & pension markets.
Combined, the company will serve more than 375 customers across the property & casualty (P&C) and life & annuities/health (L&AH) insurance segments, Majesco said in a statement.
“The industry is facing significant change and opportunity that requires solutions to drive operational efficiencies and innovation,” said James Ousley, CEO of Vitech.
The deal brings together Majesco’s strengths in P&C and L&AH core systems with Vitech’s footprint in cloud-native pension and benefits administration software. Analysts see the combination as a significant shift in the market.
“This is a big, positive step for the industry,” said Tom Scales, Principal Analyst at Celent. “It will offer the industry a powerful combination built on their strengths. Majesco delivers advancements in AI while Vitech brings an entirely new customer base from the pension & retirement space to the table.”
Majesco CEO Adam Elster said the united company would help customers “fast-track their growth, operational efficiencies, innovation, and customer excellence strategies.”
The transaction also signals continued confidence from the companies’ financial backers. Thoma Bravo, which acquired Majesco in 2021, sees the deal as an expansion of its commitment.
“This investment doubles down our belief and commitment to the Majesco business and the insurance industry,” said A.J. Rohde, a Senior Partner at Thoma Bravo.
Aaron Dupuis, Managing Partner at CVC, which will retain a stake in the combined entity, cited Majesco’s “strategic vision, execution capabilities, and sustained innovation” as key benefits for Vitech’s customers.
The companies stated that the combined portfolio, enhanced by Majesco’s AI capabilities, is designed to help insurers combat rising operating costs and adapt to rapid market changes.
Kirkland & Ellis LLP served as legal advisor to Majesco and Thoma Bravo. White & Case LLP was legal advisor to CVC, and RBC Capital Markets acted as financial advisor to Vitech. Financial terms of the deal were not disclosed.