Majesco, a platform provider for global insurance companies, is exploring opportunities to acquire small companies in the US as it looks to more than double its revenues in the next three years. The company is scouting for buys in the range of $10-20 million.
“There are some white spaces we need to fill up and we will look at acquiring some companies, and there are targets we are looking at. These are mid-size companies in the property and casualty (P&C) insurance space,” Farid Kazani, Managing Director at Majesco, a de-merged insurance arm of IT firm Mastek, said in an interaction with BusinessLine .
An internal team comprising Chief Operating Officer Edward Ossie, Chairman Arun Maheshwari and Kazani are working on the acquisitions.
Majesco, which posted revenues of $106.4 million for the year ended March 31, 2015, is aiming to improve revenues to $200-225 million in the next three years.
The company will fund the acquisitions (when it finalises) from its internal accruals, tap the markets if the need arises or go for a structured deal (combination of debt-equity).
Mastek, prior to the de-merger, had acquired Cover-All Technologies in June and Agile Technologies in January this year, Vector Insurance Services (2007), Systems Task Group International (2008) and bought the assets of SEG Software (2010).
“Our core P&C business, where we service mid-market companies, is the sweet spot for us and we see that business growing,” Kazani said, adding that Majesco gets about 85 per cent of its revenues from P&C and roughly 15 per cent from Life and Annuity.
Mexico ahoy!It is looking to enter Mexico, an important market due to its proximity to the US.
“We are looking at a market with a good potential and that is Mexico. We are in talks with potential clients in Mexico and will look how best we can execute a model between Mexico and the US,” he added.