Thoma Bravo Completes Acquisition of Insurance Software Firm Majesco

Private equity firm Thoma Bravo has completed the acquisition of insurance software firm Majesco. Under the terms of an amended merger agreement announced on Aug. 8, Thoma Bravo acquired all of the shares of Majesco common stock for $16.00 per share in cash in a transaction valuing the company at $729 million.

This price was up from $13.10 a share, or $594 million, that Thoma agreed to pay in July.

In conjunction with the closing, Majesco’s common stock ceased trading before the market opened today and the company will no longer be listed on the Nasdaq stock exchange. Majesco will operate as a privately-held company.

Adam Elster, chief executive officer of Majesco, said that with Thoma Bravo’s resources and industry knowledge, as well as the added flexibility of being a private company, Majesco looks forward to accelerating its growth strategy.

Thoma Bravo has a series of funds with more than $45 billion in capital commitments. Its current portfolio includes JD Power, Riskconnect and iPipeline. The firm has offices in San Francisco and Chicago.

New Jersey-based Majesco provides technology for property/casualty, life, annuity and group insurance companies. Founded in 1982, it has grown in part though acquisitions of tech firms including STG, Agile, Exaxe, InsPro and Cover-All. It reported $146.4. million in revenues for fiscal year 2020, a 3.6% increase over 2019. Net income came in at $9.7 million, up 45% over 2019. Its P/C insurance customer roster includes Chubb, Munich Re, Swiss Re, State Farm, Liberty Mutual, Great American, Allstate and QBE.

Nomura Securities International is acting as financial advisor to Majesco, and Sheppard, Mullin, Richter & Hampton and Khaitan & Co. are acting as legal advisors to Majesco and Majesco Limited, respectively. Kirkland & Ellis is acting as legal advisor to Thoma Bravo.

Topics Mergers & Acquisitions