(Image source: InsPro Technologies homepage.)
Majesco (Morristown, N.J.), a global insurance core systems/platform vendor, announced that it has entered into a merger agreement to acquire InsPro Technologies Corporation (Eddystone, Pa.), a software provider to the life and annuity insurance industry.
The InsPro Enterprise platform is an insurance administration and marketing system that supports group and individual business lines, and processes agent, direct market, worksite and website generated business. InsPro Technologies processes over 15 million policies for major insurance carriers and third-party administrators in the United States, including several customers who process more than a million policies each.
InsPro Technologies has a team of over 50 employees with experience in the accident & health, long term care, Medicare supplement, life and annuity market segments. Majesco says the acquisition will strengthen and expand its domain depth in voluntary, group, voluntary benefits, and worksite markets that will enable successful digital transformation journeys for insurers.
“The InsPro team brings years of experience and amazing talent to the global Majesco team. Together, we’ll focus on bridging customers to the new world with continuous software innovation that help them take advantage of the market growth opportunities in today’s insurance experience with cloud and digital transformation,” comments Adam Elster, CEO, Majesco.
Shared View of the Digital Future
“We are delighted to join the Majesco family,” comments John Heidelberger, Customer Delivery Leader, InsPro Technologies. “We looked long and hard for a partner that shared our view of the digital future for group and individual insurance lines.”
“As a former insurance industry CIO and long term practitioner, I’m confident our line of business policy processing experience coupled with Majesco’s significant investments in digital solutions will allow us to offer our combined customer base a wider selection of solutions while providing even greater career opportunities for our committed team,” Heidelberger adds.
The transaction is structured as a cash for stock merger and is subject to customary closing conditions, including InsPro Technologies’ stockholder approval. The transaction is expected to close in April 2020. Majesco intends to finance the total consideration in the transaction of approximately $12 million, subject to adjustments (including for cash and certain debt of InsPro Technologies), through available cash.
Nomura Securities International, Inc. (New York) and Morgan, Lewis & Bockius LLP (Philadelphia) represented InsPro Technologies and Needham & Company, LLC (New York) and Sheppard, Mullin, Richter & Hampton LLP (Los Angeles) represented Majesco in the acquisition.