Indian IT companies have been looking at spreading their wings in the European subcontinent by expanding their presence here. Joining the spree of European expansion is Tech Mahindra. The Indian IT giant has announced the acquisition of Eastern Europe’s Com Tec Co IT (CTC), an IT solutions and service provider with development centres in Latvia and Belarus, for €310 million.
Scaling some of its offshoring efforts near India, the deal will enable the Indian company to expand its offerings to high-end digital engineering services for some of the largest insurance, reinsurance, and financial services organisations in the world.
In a bid to further bolster the company’s presence in the insurance vertical in Europe, it is also investing €20 million for a 25 percent ownership in SWFT and Surance platforms, which are two insurtech ventures funded by CTC.
SaaS-based digital customer engagement platform SWFT is meant for digital brokers, price comparison websites, and insurers who want to reach customers directly using digital channels. Personal cyber insurance solution Surance helps in vulnerability assessment, cyber protection, and cyber insurance coverage.
Talking about how the new buy will help the IT major gain momentum in Europe, Vivek Agarwal, President - banking, financial services and insurance, HLS, and Corporate Development at Tech Mahindra said: “The insurance industry is currently undergoing a significant transformation which is driven by new emerging business models that are powered by disruptive digital technologies,”. “In order to enable this digital transformation, we are investing in strengthening our capabilities to support insurers in accelerating their transition to cloud-based platforms and provide end-to-end engineering with a strong European nearshore presence.”
Avraham Shaked, Co-Founder of CTC said: “Becoming a part of a global entity like Tech Mahindra will give us immediate access to global scale and create a tremendous growth and development opportunity for our people and the business.”
Earlier last year, the company had acquired London-based We Make Websites (WMW).