MUMBAI, DECEMBER 15:  

Majesco, a wholly-owned subsidiary of IT solutions firm Mastek, will merge with NYSE-listed Cover-All Technologies to create a $100-million entity that could make further inroads into the insurance technology space globally.

The combined entity is to retain the Majesco brand and will be listed on the NYSE.

Once the transaction closes, Cover-All’s stockholders will receive 16.5 per cent of the outstanding shares of the combined company, on a fully diluted basis, according to a press statement.

“We are particularly excited because, as a larger company, we will have better resources including expanded scale to meet the needs of any insurer regardless of size or location, and improved financial strength to invest in innovative and new products,” said Manish Shah, Cover-All’s President and CEO.

Cover-All specialises in providing a browser-based family of Policy, Business Intelligence, and Claims solutions.

The new Majesco will have a customer base of 150 insurance customers served by a global delivery team.

New CEO for combined entity

Ketan Mehta, Chief Executive Officer and founder of Majesco, will serve as the President and CEO of the combined entity.

The transaction is expected to close in the second quarter of 2015.

Last week, Majesco had announced that it will acquire the insurance business of US-based Agile Technologies in a move that brings in IT consulting, data strategy and implementation capabilities to the acquirer.

Reacting to the development, shares of Mastek were up by 19.99 per cent to close at ₹324.8 on the BSE today.