Majesco, a provider of cloud-native, AI-native software for the P&C and L&AH insurance segments, announced its agreement to acquire Vitech, a specialist in cloud-native pension and benefits administration software. This acquisition aims to establish Majesco as a leading provider of cloud-native and AI-native core technology across the Group & Benefits and Retirement & Pension segments.
The combined entity is projected to serve over 375 customers, including more than 100 within the L&AH segment and over 275 in the P&C segment. The expanded product portfolio is designed to enhance value for insurers operating in both P&C and L&AH markets, noting that over 40% of insurers operate in both segments.
Majesco operates as a portfolio company of Thoma Bravo, a software investment firm, while Vitech is a portfolio company of CVC, a private markets investment firm. As part of this transaction, CVC Funds will make a minority investment into Majesco to support the combined company’s growth and innovation initiatives.
Adam Elster, CEO of Majesco, stated, “We’re thrilled to bring together the pre-eminent technology solutions in the Group & Benefits and Retirement & Pension sectors, which will help the L&AH segment, and our customers fast-track their growth, operational efficiencies, innovation, and customer excellence strategies.” He added that the integration with Majesco’s P&C intelligent solutions will strengthen the offering of intelligent, market-leading solutions for the insurance industry.
James Ousley, CEO of Vitech, commented on the industry’s need for solutions to drive operational efficiencies and innovation. He noted, “The united team will bring the talent, extensive knowledge, market experience, and innovative solutions crucial for insurers’ profitable growth. We are thrilled for our joint customer base and the opportunities ahead for the broader market.”
The acquisition integrates a range of L&AH market solutions, including L&AH Intelligent Core, IDAM, Intelligent Sales and Underwriting, V3locity Core, V3locity Campaign Management, and Digital portals. These offerings cater to customer needs in the US, Canadian, and UK markets. The combined portfolio is further enhanced by Majesco’s AI capabilities, which are intended to accelerate growth, improve operational efficiencies, enhance productivity, shorten time-to-market for new products, reduce expense ratios, and facilitate adaptation to market, customer, risk, and regulatory changes.
Tom Scales, Principal Analyst at Celent, characterized the acquisition as a positive development for the industry. “It will offer the industry a powerful combination built on their strengths. Majesco delivers advancements in AI while Vitech brings an entirely new customer base from the pension & retirement space to the table. The market should benefit from this,” Scales remarked.
The strategic alignment aims to provide joint customers with a partner demonstrating financial stability, leadership in AI, and expertise necessary for sustained innovation and competitive AI capabilities. The increasing adoption of AI is expected to transform the P&C and L&AH insurance and retirement & pension markets. Several existing customers currently utilize solutions from both companies.
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J. Rohde, Senior Partner at Thoma Bravo, expressed belief in Majesco’s business and commitment to the insurance industry, stating that this investment expands into the pension & retirement market, leveraging AI leadership for customer growth. Aaron Dupuis, Managing Partner at CVC, highlighted Vitech’s progress in transitioning to a SaaS model and expressed confidence in Majesco’s potential and the combined entity’s business value to the insurance industry.
Rising operating costs and expense ratios are challenges faced by the P&C and L&AH insurance segments. Majesco’s combined offerings aim to provide a new business and technology foundation to address these issues, enabling companies to compete through next-gen intelligent technology, AI, digital tools, and innovative strategies. Kirkland & Ellis LLP served as legal advisor to Majesco and Thoma Bravo. White & Case LLP served as legal advisor to CVC. RBC Capital Markets acted as financial advisor to Vitech.
