Majesco shareholders are set to receive $13.10 in cash per share as the company will be acquired by Thoma Bravo.
Majesco, a global leader of cloud insurance software solutions for insurance business transformation, has signed a definitive agreement to be acquired by Thoma Bravo, L.P., one of the worlds leading private equity firms focused on the software and technology-enabled services sectors, in a transaction valuing the company at $594 million.
Under the transaction, all Majesco shareholders of record will receive $13.10 in cash for each share of Majesco common stock upon closing of the transaction. The price represents a premium of approximately 74% over Majesco’s average closing price during the 30-trading day period ended July 17, 2020.
The proposed merger is subject to the approval of Majesco shareholders and the approval of Majesco’s parent company, Majesco Limited.
Majesco’s Board of Directors has unanimously approved the merger and recommends that shareholders also approved it. Majesco Limited’s Board of Directors also came into full agreement with the divestment of Majesco and recommended to its shareholders to approve the transaction.
Majesco will solicit written consents from its shareholders to approve the Merger Agreement and expects to distribute the written consents in August 2020.
“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 CEO, Adam Elster.
Elster Continued: “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.”
A partner at Thomo Bravo, A.J. Rhode, further commented on the announcement: “We see Majesco as a leader in helping its insurance customers get to the cloud faster, and modernize their internal and external facing systems.
“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 fulfil that journey even quicker and more ambitiously.”
Following the closing of the transaction, Majesco will operate as a privately held company.
