Tech Mahindra dipped over 2%; acquired Com Tec for €310 million

18 Jan 2022 , 12:26 PM

Tech Mahindra Ltd.’s share erased morning gains after the company received approval to acquire 100 percent equity shares in Com Tec Co IT and 25 percent equity shares each in SWFT Technologies Ltd. and Surance Ltd. Tech Mahindra is to pay a total consideration of up to EURO 310 million, including earnouts for the CTC acquisition.

The acquisition will enable Tech Mahindra to tap onto the potential industry disruption in the Insurance sector, expand its offerings to high-end digital engineering services for some of the largest insurance, re-insurance and financial services organizations globally and scale its nearshore delivery presence.

Tech Mahindra is also investing a cumulative amount of €20 million, in SWFT and Surance, for a 25% ownership in each of these two  InsurTech ventures funded by the same founding group as CTC. SWFT is a SaaS-based digital customer engagement platform. It offers multiple functionalities for insurance sales & distribution and is designed for digital brokers, price comparison websites, and insurers wanting to directly reach their customers through digital channels. Surance is an end-to-end personal cyber insurance solution that focuses on vulnerability assessment, cyber protection, and cyber insurance coverage.