Mastek buys Vector Insurance Services
16 July 2007 | 2169 views | 0
Mastek, a leading UK IT solutions player with global operations providing new technology and IP-led enterprise solutions to insurance, government, and financial services organizations worldwide, today announced the acquisition of Vector Insurance Services LLC (Vector), a technology solutions provider and third party administrator that focuses on the North American life & annuity insurance industry.
Under the terms of the agreement, Mastek's wholly-owned US subsidiary MajescoMastek will hold 90% equity stake in Vector. The consideration for this acquisition will be paid partly in cash and partly by way of future cash earn outs.
Vector provides policy acquisition, administration, and processing solutions to customers in the North American life insurance industry. Among its customers are two of America's largest insurance carriers that have chosen Vector as their service provider of choice. The company had revenues of US$4.2 million in its financial year ended 31 December 2006. The company has 26 employees, with significant domain expertise in the insurance space. Mastek's larger scale of operations and strong IP-led capabilities, combined with Vector's robust client track record and presence in the US insurance space, is expected to enable significant leverage across multiple points in the value chain. Following this transaction, Vector will operate as VectorMastek.
Commenting on the acquisition, William McCarter, President of Mastek's US operations said: "This acquisition reinforces our solutions-driven offerings in the high opportunity US insurance market, adding a SaaS capability to our existing competencies. Vector fits very well with our overall strategy to be a leader in providing end-to-end IT solutions within the insurance vertical. Our companies share many synergies in domain expertise, delivery capabilities, and processes that were desirable to us."
Harold J. Apple, Vector CEO and Founder, said: "We are very excited about our future prospects with Mastek as our parent company. They have world-class capabilities and delivery centres, a global presence, and significant intellectual property. We believe that our existing policy administration offering will be enhanced by Elixir, Mastek's SOA-based enterprise platform for life and annuity carriers. Our customers will also benefit from the technology skills and offshore delivery advantages that Mastek will bring as a result of this transaction."