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Transactions

January 2021
Dublin, Ireland
has agreed to be acquired by
Morristown, NJ
a portfolio company of


Background

ClaimVantage is an InsurTech provider of automated, cloud-based life, health and absence claims management solutions to insurance carriers, third-party administrators (TPAs), and employers. ClaimVantage’s SaaS solutions are highly configurable and designed to optimize the user experience with an intuitive web and mobile user-portal for self-service capabilities. ClaimVantage’s solutions are hosted on the Salesforce Lightning platform, which provides a secure, reliable, and scalable software solution that supports the entire back-end process of a claim.

Following years of substantial growth, ClaimVantage’s founder-led team began to receive significant inbound interest from several parties. Aware of M&A’s expertise in advising founder-led companies, ClaimVantage engaged M&A to help them explore their strategic and financial alternatives. 



Overview

M&A leveraged its deep domain expertise in advising enterprise software companies, working closely with Management, to develop materials that would clearly communicate ClaimVantage’s strengths, strategy, and growth potential. M&A then worked with the company to identify a focused group of both strategic partners and financial sponsors, with insurance technology expertise, that recognized the strength of the company’s product offering and the value that its acquisition would bring. With M&A’s guidance, Management vetted these companies, met with their representatives, and, after a careful review of both minority and majority offers, agreed to sell the company to Majesco, a New Jersey-based provider of a cloud-based software suite for the insurance industry, a portfolio company of Thoma Bravo.

M&A Role

M&A acted as the exclusive strategic and financial advisor to ClaimVantage on its sale. M&A leveraged its deep domain expertise to conduct a methodical and disciplined competitive process that resulted in multiple indications of interest and letters of intent, productive management meetings and a successful transaction.

M&A prepared detailed transaction marketing materials, conducted discussions with potentially interested parties, facilitated information exchange, advised the company on the negotiation and evaluation of alternative offers, managed preliminary and confirmatory due diligence reviews, and eventually helped the company close the transaction with between Majesco and ClaimVantage.

 

Press

Majesco Acquires ClaimVantage to Strengthen and Scale the L&A and Group Business

January 07, 2021

03:43 PM Eastern Standard Time

MORRISTOWN, N.J.--(BUSINESS WIRE)--Majesco, a global provider of cloud insurance platform software, today announced that it has completed the acquisition of ClaimVantage, a global provider of enterprise claims software as well as absence and accommodation management for the L&A market segment. The acquisition of ClaimVantage comes just three months after the Thoma Bravo acquisition of Majesco. It strengthens Majesco’s strategic vision as a premier provider of next generation insurance technology solutions that enable insurers to accelerate their digital transformation to meet tomorrow’s demands today.

 

“We’re excited to welcome ClaimVantage’s customers to our community and look forward to helping them build the future of their business,” commented Adam Elster, CEO of Majesco. “Our acquisition of ClaimVantage expands and complements our key strategic focus in the L&A market segment with both strategic and operational investments in the business and are reflected in the growing market recognition by industry analysts, new and expanding customers and broadening strategic partnerships. Together these enable us to partner with insurers to capture the market opportunities unfolding and accelerate their digital and business transformation and cloud journey.”

 

ClaimVantage is recognized as a top enterprise claims management solution for L&A and Group insurance market and a leader in Absence, Accommodation and Integrated Disability Management (IDAM) to meet operational and federal and state compliance leaves demands. In addition, many corporate organizations have an increasing need for absence and accommodation management that is not offered by their insurers. ClaimVantage provides a valuable, established enterprise claims solution with the market leading absence and accommodation management capabilities to meet the unique needs for disability income products for over 35 customers including insurers, TPAs and large employers.

 

“Since inception, ClaimVantage has been committed to building state-of-the-art, cloud-based solutions designed to transform the Life and Health claims insurance space, as well as absence management,” said Leo Corcoran, CEO of ClaimVantage. “With Majesco’s market and cloud strength, SaaS expertise, financial strength and growing leadership in the L&A and Group market, we will be able to deliver even greater value to our customers. We are excited to be joining the Majesco team and look forward to accelerating the industry transformation together.”

 

As the L&A industry enters a new decade, many insurers recognize the significant need to improve both operationally and innovatively, and create immediate business results and long-term value by replacing legacy debt in terms of operating models and core systems that support the market demand for employee and voluntary benefit products, particularly an increased interest in disability income insurance. Robust disability claims with integrated absence and accommodation management is one of the top areas gaining stronger interest by employers for growth that has accelerated during the pandemic, moving down market to smaller insurers and TPAs.

 

“This is a win-win-win move for both Majesco and ClaimVantage, positioning them well to meet the needs of a rapidly evolving industry,” commented Rob McIsaac, EVP of Research and Consulting and practice leader for life/annuity/benefits at Novarica. “Enterprise claims opportunities are both increasing and coming “down market” to meet the expanded demand for disability income and other ancillary products as part of voluntary benefits offerings. This comes in concert with a growing need for robust absence management capabilities to address a broadening array of state-level requirements, playing directly to a strength of ClaimVantage. Majesco’s financial strength, recognized leadership position for policy administration, coupled with ClaimVantage solutions, provides group and voluntary benefit insurers with a solution set where the merged entities will be stronger and more compelling than just the sum of the parts”.

 

This acquisition advances Majesco’s vision and commitment to our customers, delivering additional value including:

  • Broaden Customer Base – Adds over 35 new customers with deep loyalty within the US and other geos including EMEA and Australia.
  • Strong Talent – Brings people to the team with deep insurance process and technology domain experience and are trusted partners with their current customers.
  • Product Roadmap Alignment – Aligns disparate yet dependent product roadmaps to create improved business value, accelerate digital transformation and keep insurers at the leading edge.
  • Cloud Product Expansion – Proven products that extend our core and digital cloud product portfolio to deliver integrated capabilities to customers that address key market pressures and priorities.

This is the second acquisition in nine months, including the acquisitions of InsPro Technologies on April 1, 2020. Marlin & Associates acted as exclusive strategic and financial advisor to ClaimVantage.

 

About Majesco

Majesco, provides technology, expertise, and leadership that helps insurers modernize, innovate and connect to build the future of their business – and the future of insurance – at speed and scale. Our platforms connect people and businesses to insurance in ways that are innovative, hyper-relevant, compelling and personal. Over 200 insurance companies worldwide in P&C, L&A and Group Benefits are transforming their businesses by modernizing, optimizing or creating new business models with Majesco. Our market-leading solutions include CloudInsurer® P&C Core Suite (Policy, Billing, Claims); CloudInsurer® LifePlus Solutions (AdminPlus, AdvicePlus, IllustratePlus, DistributionPlus); CloudInsurer® L&A and Group Core Suite (Policy, Billing, Claims); Digital1st® Insurance with Digital1st® Engagement, Digital1st® EcoExchange and Digital1st® Platform – a cloud-native, microservices and open API platform; Distribution Management, Data and Analytics and an Enterprise Data Warehouse. For more details on Majesco, please visit www.majesco.com.

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