New Jersey:
Majesco,a New Jersey-based based cloud insurance software provider, announced on Monday it will be acquired by Thoma Bravo, a private equity firm focused on the software and technology services sectors, in a deal worth $594 million.

Following the closing of the transaction, Majesco said it will operate as a privately-held company.Under the terms of the agreement, all Majesco shareholders will receive $13.10 in cash for each share of Majesco common stock, a price representing a premium of approximately 74% over Majesco’s average closing price during the 30-trading day period ended July 17, 2020.

Upon completion of the transaction,Majesco expects to continue to operate under the leadership of CEO Adam Elster and the existing Majesco leadership team.

“Our decision was made with the best interests of our stockholders and we believe that the transaction will also benefit our 2,400+ employees and our more than 200 customers,” said Elster. 

“We are extremely excited to partner with Thoma Bravo,a firm with an established track record of working with companies transitioning to the cloud.This transaction delivers significant cash value to our stockholders.Moreover, the added flexibility we will have as a private company, combined with the benefit of Thoma Bravo’s knowledge and domain expertise, can allow us to more effectively focus on our long-term investment and growth objectives, to the benefit of our employees, customers and partners.We are in alignment with Thoma Bravo on our strategic vision to help global insurers transition to the cloud,'' he added.

Majesco expects the merger to close on or before the end of 2020. The proposed merger is subject to the approval of Majesco shareholders and the approval of the shareholders of Majesco’s parent company, Majesco Limited. Majesco’s board of directors has unanimously approved the merger and recommends that shareholders approve the merger and Majesco Limited’s board of directors has unanimously approved the divestment of Majesco and recommended to its shareholder to approve the transaction.

“We see Majesco as a leader in helping its insurance customers get to the cloud faster, and modernize their internal and external facing systems,” A.J. Rohde, a partner at Thoma Bravo, said.

“We have tremendous confidence that Adam Elster and his management team, coupled with our operating capabilities and experience in this market, can help these customers fulfill that journey even quicker and more ambitiously,” he said.

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

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.