The Mumbai-based IT solutions and services company Mastek has acquired the US-based Systems Task Group (STG) International, an IP-based enterprise solutions provider to the North American property and casualty (P&C) insurance industry.Mastek bought the company through its wholly owned US subsidiary, MajescoMastek, in an all-cash deal worth $29 million (around Rs 116 crore).
This acquisition is the second such initiative by Mastek in the current financial year. Under terms of the agreement, MajescoMastek will hold 100 per cent stake in STG. While 85 per cent of the total consideration is payable at the time of acquisition, the remaining will be linked to ongoing performance and paid by way of earn-outs.The acquisition is being funded through internal accruals and bank borrowings.
The buy will strengthen Mastek’s presence in the non-life insurance segment and expand the opportunity pipeline in the overall insurance vertical. STG, headquartered in New York, has a fully integrated offshore competency centre in Mumbai (India).
Read more in
The Business Standard article.
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