In a second-of-its-kind investment in the insurance sector, Bangalore-based IT services company, MphasiS, a unit of Hewlett Packard Co., says it has entered into an agreement to acquire Wyde Corp., an Eagan, Minn., provider of insurance core systems software. Being the creator of insurance policy administration solution, Wynsure, the acquisition will become MphasiS’ second investment in the insurance sector.
In an interview on CNBC-TV, Ganesh Ayyar, CEO of MphasiS, said that the company has offered 2-4.5 times its sales figures to acquire Wyde in an all-cash deal, but did not reveal terms of the deal. Ayyar said he believed that the acquisition, which he hopes to close within the next 30 days, will be EBITDA accretive for MphasiS (Ayyar reports that their revenue size hovers at approximately US$30 million with 18% EBITDA in 2010).
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