Edison, N.J. - In the latest of several insurance-specific outsourcing vendor mergers and acquisitions, insurance software provider MajescoMastek has acquired Indianapolis-based Vector Insurance Services LLC (Vector), a technology solutions provider and third-party administrator that focuses on the North American life & annuity insurance industry.
Vector provides policy acquisition, administration, and processing solutions to customers in the North American life insurance industry. The company has 26 employees with domain expertise in the insurance space. MajescoMastek is the U.S. subsidiary of Mumbai, India-based Mastek.
"This acquisition reinforces our solutions-driven offerings in the high opportunity U.S. insurance market, adding a software-as-a-service capability to our existing competencies," said William McCarter, President of Mastek's US operations. "Vector fits very well with our overall strategy to be a leader in providing end-to-end IT solutions within the insurance vertical."
As reported in INN, several outsourcing vendors in 2007 have already bolstered their offerings with insurance-specific technology acquisitions. Innovation Group, a U.K. provider of P&C outsourcing and technology, acquired Boston-based claims-reporting outsourcer First Notice Systems, Inc. from Concentra Operating Corp., Addison, Texas. Innovation Group counts among its U.S. customers the California State Automobile Association, Nationwide Indemnity and The Auto Club of Southern California. First Notice provides services to Pemco and The Hanover Group, among others.
The Innovation Group announcement followed close on the heels of another outsourcing deal, Capgemini's acquisition of India-based Kanbay, a provider of outsourcing services to the financial services sector. Capgemini will acquire all of the outstanding common shares of Kanbay for $29 per share in cash. Kanbay claims to have more than 200 customers in the insurance sector, which, say analysts, has the potential to strengthen Capgemini's presence in North America by providing it with an improved banking and financial services focus.
Following today's transaction, Vector Insurance Services will operate as "VectorMastek."
"We believe that our existing policy administration offering will be enhanced by Elixir, MajescoMastek's SOA-based enterprise platform for life and annuity carriers," said Harold Apple, Vector CEO and founder. "Our customers will also benefit from the technology skills and offshore delivery advantages that MajescoMastek will bring as a result of this transaction."
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