Tech Mahindra acquired Com Tec Co IT Ltd (CTC), a software solutions and service provider for €310 million (around Rs. 2,620 crore).

“The acquisition includes earnouts and synergy-linked pay-outs, will allow Tech Mahindra to expand its offerings to high-end digital engineering services for some of the largest insurance, re-insurance and financial services clients in the world,” company says.

Tech Mahindra is also investing €20 million for a 25 percent ownership in SWFT and Surance platforms, two InsurTech ventures funded by CTC.

SWFT is a software as a service, or SaaS-based digital customer engagement platform which provides services to digital brokers, price comparison websites and insurers.

Surance is also a personal cyber insurance solution that helps in vulnerability assessment, cyber protection and cyber insurance coverage.

Tech Mahindra says, “the acquisition would help scale its European presence, with over 700 IT professionals in contemporary technologies and processes.”

Vivek Agarwal, president of banking, financial services and insurance, and corporate development, Tech Mahindra says, “the insurance industry is currently undergoing a significant transformation, which is driven by new emerging business models that are powered by disruptive digital technologies. In order to enable this digital transformation, we are investing in strengthening our capabilities to support insurers in accelerating their transition to cloud-based platforms and provide end-to-end engineering with a strong European nearshore presence.”

Avraham Shaked, co-founder, CTC says, “becoming a part of a global entity like Tech Mahindra will give us immediate access to global scale and create tremendous growth and development opportunity for our people and the business.”

The announcement of acquisition was made after market hours. The Tech Mahindra stock fell one percent to Rs.1,721.65 on BSE, even as the benchmark Sensex rose 0.14 percent to 61,308.91.

Indian IT companies opt acquisition spree to expand their services offerings and consulting businesses amid surging demand. The CTC acquisition, for instance, is part of recent efforts by Tech Mahindra to scale its offshore operations. The company has now made about ten acquisitions in under twelve months.