Majesco to acquire Vitech, expanding cloud-native insurance and pension technology capabilities

Majesco, a provider of cloud-native, AI-driven software for the P&C and L&AH insurance segments, has announced an agreement to acquire Vitech, a developer of cloud-based pension and benefits administration solutions.

The transaction will establish Majesco as a provider of core technology for the Group & Benefits and Retirement & Pension markets. The combined company will support over 375 customers, including more than 100 in L&AH and 275 in P&C, with a product portfolio designed to serve insurers operating in both sectors.

Majesco is owned by Thoma Bravo, a software-focused investment firm, and Vitech is supported by CVC, a private markets investment firm. As part of the agreement, CVC Funds will take a minority stake in Majesco to help drive the combined company’s growth and product development.

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.

“Together with our P&C intelligent solutions, we will strengthen our offering of cutting-edge, intelligent, and market-leading solutions that redefine businesses for a new era of insurance.”

James Ousley, CEO of Vitech, added: “The industry is facing significant change and opportunity that requires solutions to drive operational efficiencies and innovation. 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 merger unites an extensive suite of L&AH offerings, including L&AH Intelligent Core, IDAM, Intelligent Sales and Underwriting, V3locity Core, V3locity Campaign Management, and Digital Portals, catering to clients in the US, Canada, and the UK. Majesco’s AI-driven capabilities are designed to strengthen this portfolio by driving growth, streamlining operations, increasing productivity, and speeding the introduction of new products.

Tom Scales, Principal Analyst at Celent, commented: “This is a big, positive step 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.”

The combined company aims to provide joint customers with financial stability, AI expertise, and industry knowledge, enabling continued innovation and enhanced AI capabilities. Several customers already use solutions from both companies to meet operational and strategic goals.

A.J. Rohde, Senior Partner at Thoma Bravo, said: “Majesco has delivered such terrific innovation, market leadership, and exceptional growth since our acquisition, and has really been a driving force pushing the insurance core systems market forward.

“This investment doubles down our belief and commitment to the Majesco business and the insurance industry, expanding into the pension & retirement market and leveraging its AI market leadership to drive customer growth and success.”

Aaron Dupuis, Managing Partner at CVC, added: “We are thrilled about Vitech’s acquisition by Majesco, a company recognised for its strategic vision, execution capabilities, and sustained innovation, all of which will greatly benefit Vitech’s customers and solutions.

“We are proud of Vitech’s progress over recent years in transitioning to a SaaS model. Our investment in the combined company signifies a strong confidence in Majesco’s potential and the business value of the combined entity to the insurance industry.”

With rising operational costs creating challenges for P&C and L&AH insurers, Majesco’s solutions provide a foundation for AI-driven efficiency, technology modernisation, and improved business operations.

Kirkland & Ellis LLP serves as legal advisor to Majesco and Thoma Bravo, White & Case LLP advises CVC, and RBC Capital Markets is acting as financial advisor to Vitech.