Majesco Makes Strategic Moves to Accelerate Cloud Growth
An Estimated $35 million to be invested to fund growth plans, including acquisitions
Deepthi | Myequity news | Date : 06-12-2018 19:55:00 IST
Majesco, a global provider of cloud insurance software solutions for insurance business transformation, today announced the filing of a registration statement relating to rights offering to all shareholders in which it expects its parent company will invest an estimated $35 million that it raised through a Qualified Institutional Placement in India in February 2018. The company intends to use this capital to fund the remainder of the Exaxe acquisition, pay off debt, and accelerate cloud growth, which includes additional acquisition opportunities.
“This capital provides us with additional resources to invest in enhancing our business platform,” said Adam Elster, CEO at Majesco. “Our success in supporting insurance companies who are leveraging our cloud platform software to transform their business continues to grow, and we want to take advantage of this opportunity.”
The funds will be used to support three strategic areas:
Bolster Majesco’s Balance Sheet to Fund Future Acquisition Opportunities
The new capital will be used to pay off debt and will strengthen Majesco’s balance sheet providing the company with flexibility to invest in future growth opportunities. These funds will support future acquisitions to strengthen Majesco’s cloud and speed to value market leadership across all insurance market segments.
Strengthen L&A EMEA Presence to Leverage Growing Market Opportunity
The new capital will provide the necessary funding for the remainder of the acquisition of Exaxe, a leading cloud software company serving a growing list of top European insurersand headquartered in Dublin, Ireland that was announced on November 27, 2018. This acquisition strengthens and expands Majesco’s software offerings in EMEA for the individual life, pensions and wealth management market and complements Majesco’s software and Group focused customer base in the UK. Exaxe cloud software is recognized for significantly improving customer experience, reduced implementation times and speed to market for new products with operational efficiency.
Invest in Business Platform to Accelerate and Support Growth
As the company focuses on accelerating growth and integrating the Exaxe acquisition, a key strategic focus is to infuse new funding in the business operation. Not only will this support growth, but the company expects additional capital will accelerate and expand Majesco’s cloud insurance software market leadership and focus on delivering speed to value for a rapidly changing insurance market. About Majesco
Insurance business transformation is a journey of change and revitalization, a renaissance of Insurance. Approximately 160 insurance companies worldwide in P&C, L&A and Group/ Employee Benefits are transforming their businesses with Majesco’s solutions. Majesco’s solutions include policy management, new business / underwriting, rating, billing, claims management, distribution management, BI/ analytics, predictive modeling, digital platform with mobile and portal, testing services, cloud services, bureau and content services, transformation services, consulting services and more.