Majesco, the insurance industry’s foremost innovator in cloud-native, AI-native software for the P&C and L&AH segments, today announced that it has entered into an agreement to acquire Vitech, a provider of cloud-native pension and benefits administration software. This acquisition will position Majesco as the premier market leader for cloud-native and AI-native core technology for the Group & Benefits and Retirement & Pension segments. Combined, Majesco will serve more than 375 customers including over 100 customers across the L&AH segment and over 275 customers across the P&C segment. The combined product portfolio will deliver greater value to insurers operating across both the P&C and L&AH market segments, with over 40% of insurers operating in both segments.
Majesco is a portfolio company of Thoma Bravo, a leading software investment firm, and Vitech is a portfolio company of CVC, one of the world’s leading private markets investment firms. As part of this transaction, CVC Funds will make a minority investment into Majesco to further the combined company’s growth and innovation.
“We’re thrilled to bring together the pre-eminent technology solutions in the Group & Benefits and Retirement & Pension sectors, which will help the L&AH segment, and our customers fast-track their growth, operational efficiencies, innovation, and customer excellence strategies,” said Adam Elster, CEO of Majesco. “Together with our P&C intelligent solutions, we will strengthen our offering of cutting-edge, intelligent, and market-leading solutions that redefine businesses for a new era of insurance.”
“The industry is facing significant change and opportunity that requires solutions to drive operational efficiencies and innovation,” said James Ousley, CEO of Vitech. “The united team will bring the talent, extensive knowledge, market experience, and innovative solutions crucial for insurers’ profitable growth. We are thrilled for our joint customer base and the opportunities ahead for the broader market.”
The acquisition brings together a breadth of L&AH market-leading solutions including L&AH Intelligent Core, IDAM, Intelligent Sales and Underwriting, V3locity Core, V3locity Campaign Management, and Digital portals to meet the needs of customers in the US, Canadian and UK markets. The extensive portfolio of intelligent solutions is strengthened with Majesco’s AI leadership, which is proven to accelerate growth, improve operational efficiencies, enhance productivity, create speed to market for new products, reduce expense ratios, and offer relentless innovation to adapt to market, customer, risk and regulatory changes.
“This is a big, positive step for the industry,” said Tom Scales, Principal Analyst, 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. The market should benefit from this.”
Together, Majesco enhances the value for joint customers by bringing them a partner with financial fortitude, AI leadership, and deep expertise needed to deliver sustained innovation and the cutting-edge AI capabilities required to stay competitive, relevant, and profitable in today’s competitive market. As AI adoption accelerates in speed, breadth, and scale, it is poised to transform the P&C and L&AH insurance and retirement & pension markets in ways the industry has never seen before. Several joint customers are using solutions from both companies today to meet their business objectives.
“Majesco has delivered such terrific innovation, market leadership, and exceptional growth since our acquisition, and has really been a driving force pushing the insurance core systems market forward,” said A.J. Rohde, Senior Partner at Thoma Bravo. “This investment doubles down our belief and commitment to the Majesco business and the insurance industry, expanding into the pension & retirement market and leveraging its AI market leadership to drive customer growth and success.”
“We are thrilled about Vitech’s acquisition by Majesco, a company recognized for its strategic vision, execution capabilities, and sustained innovation, all of which will greatly benefit Vitech’s customers and solutions,” said Aaron Dupuis, Managing Partner at CVC. “We are proud of Vitech’s progress over recent years in transitioning to a SaaS model. Our investment in the combined company signifies a strong confidence in Majesco’s potential and the business value of the combined entity to the insurance industry.”
The P&C and L&AH insurance segments are challenged with rising operating costs and expense ratios that create pressure on profitability and market competitiveness. Majesco enables P&C and L&AH companies to establish a new business and technology foundation to address these challenges and compete in an AI-driven world by offering next-gen intelligent technology, AI, digital tools, and innovative strategies to enhance their business, product offerings and operations.
Kirkland & Ellis LLP is serving as legal advisor to Majesco and Thoma Bravo. White & Case LLP is serving as legal advisor to CVC. RBC Capital Markets is acting as financial advisor to Vitech.
