Majesco Acquires Vitech to Strengthen AI and Cloud Solutions in Insurance
Majesco, a prominent force in cloud-native and AI-centered insurance technology, has finalized its acquisition of Vitech. Known for its cloud-native solutions in pension and benefits administration, this acquisition strategically enhances Majesco's influence within the Group & Benefits and Pension & Retirement sectors, solidifying its leadership in next-generation core platforms.
Strategic Growth and Enhanced Capabilities
Adam Elster, CEO of Majesco, articulated the significance of this acquisition, stating, "We are thrilled to officially welcome Vitech to Majesco. This is a powerful moment for our customers as we significantly expand into new markets and add capabilities and expertise to drive innovation, growth, and efficiency." Elster emphasized the integration's potential to leverage AI leadership across diverse segments, supporting customer and market needs effectively.
Expanded Product Offerings and Market Adaptation
The acquisition allows Majesco to broaden its product offerings into the Pension & Retirement domain, enhancing its ability to assist clients in reducing expense ratios and streamlining complex operations. The expanded portfolio aims to accelerate product innovation and rapidly adapt to regulatory changes and market demands, providing a robust, future-proof platform for operational excellence and market growth.
James Ousley, CEO of Vitech, remarked on the deal, highlighting that the combined resources provide a solid foundation for fostering operational efficiency and capability extension in a dynamic market. Ousley noted, "Our combined talent and solutions portfolio create a powerful foundation to improve efficiency, extend capabilities, and prepare for a rapidly evolving market."
AI-Driven Innovation in Insurance Markets
This acquisition marks the beginning of Majesco's new growth phase, emphasizing AI-driven innovation and technological fortification across Property & Casualty (P&C), Life & Annuity (L&AH), and Retirement & Pension insurance markets. Majesco has also announced a substantial increase in its AI investments to enhance its P&C roadmap, aiming to expand customer value within this sector.
In conjunction with the acquisition, CVC Funds made a minority investment in Majesco, providing additional resources intended to fuel ongoing expansion and innovation of Majesco's AI-native product suite.
Supporting Legal and Financial Perspectives
Legal advisors for the deal included Kirkland & Ellis LLP for Majesco and Thoma Bravo, with White & Case LLP advising CVC Capital Partners. RBC Capital Markets acted as the financial advisor to Vitech.
Andrew Doerman, Vice President of Digital Distribution and Strategy at Legal & General America, emphasized the importance of diversifying distribution models to bridge the coverage gap in life insurance. In a related development, the Horizon digital platform aims to enhance pricing, underwriting, and service quality to expand consumer reach effectively.