Mastek Ltd.Acquired Agile Technologies Ltd.:: IndiaNivesh

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Mastek Ltd…Acquired Agile Technologies Ltd.
Majesco, Inc. (Majesco) (100% subsidiary of Mastek Ltd) announced the acquisition
of US based Agile Technologies (Agile), an insurance-industry-focused IT consulting
firm with revenues of over $9 mn. However, the company has not disclosed the
details of the deal including acquisition amount. In discussion with the management,
we are of the opinion that 60% of the total deal amount would be paid upfront and
remaining 40% will be paid during the span of three years (performance based).
The deal is likely to be closed by January 2015. Agile services has over 20 customers
with a high quality talent pool of over 50 insurance technology professionals.
Our take
In our view, this acquisition strategy is a forward integration for Majesco Ltd, and
following are the likely synergy accruals:
 The acquisition will enable Majesco to accelerate its global customer support
and growth plans.
 The acquisition will also enable cross selling, as the client base of the
companies are mutually exclusive. Consequently, we could see significant
double-digit growth in the insurance consulting business of Agile going-ahead.
Additionally, the acquisition will also open doors for the Majesco to sell their
insurance platform.
 The acquisition will diversify Majesco’s consulting practice, business process
optimization capabilities and additional technology services including data
architecture strategy & services.
Agile’s current revenue in CY13 was $9 mn, with EBITDA margin higher than the
overall margin of Majesco Ltd. However, the company’s PAT margin was very lumpy
due to higher employee cost and project based revenue. Considering Majesco’s
client base and cross selling opportunity for Agile, we expect significant consistency
on revenue and on PAT front going-ahead.
Highlights of Agile past projects
 Global Data Warehouse for a Global Insurance Provider
 Midwest-Based Excess and Surplus Lines Insurance Carrier
 Midwest Based Non-Standard Automobile Insurance Carrier
 Insurance Carrier of Excess and Surplus lines
 Midwest-Based Non-Standard Automobile Insurance Carrier
 Midwest Based Non-Standard Automobile Insurance Carrier
 Midwest-Based Multi-Peril Crop Insurance Company
 Operational Data Store for Fast-Growing Insurance Company
 Insightful Solution for a Specialty Insurance Carrier
 Global Insurance Provider specializing in Excess and Surplus coverage
 Midwest-Based Multi-Peril Crop Insurance Company
 Document Management System for Global Insurance Brokerage
 Midwest-Based Excess and Surplus Lines Insurance Carrier
 Eastern-Based Bio-medical Device Manufacturer
 Gwinnett County, GA