Irish technology company Exaxe acquired in deal worth up to €11.6m

Exaxe, an Irish company that provides cloud-based insurance technology solutions, has been acquired by US-based Majesco in a deal valued at up to €11.6 million.

Founded in 1997 by Norman Carroll and Philip Naughton, the software-as-a-services (Saas) company is headquartered in Sandyford, Co Dublin. Its clients include Acorn Life, Aviva, AXA Life Invest, Capita, OneFamily, Police Mutual, Retirement Advantage and the Eureko Group.

Majesco has paid an initial €6.39 million for Exaxe for a 90 per cent stake, according to company filings. The company said it will pay an additional €720,000 for the remaining 10 per cent it doesn’t own by August 2019.

A deferred consideration payment of up to €4.50 million, based on achievement of adjusted earnings before interest, tax, depreciation and amortisation (ebitda) will be made between 2019 and 2021.

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“This was an easy decision for us. Majesco’s strength coupled with its complementary suite of innovative digital solutions and deep insurance industry expertise means we can offer a wider selection of solutions to new and existing clients and provide greater career opportunities for our committed team,” said Mr Carroll, chief executive of Exaxe.

Majesco, which is headquartered in New Jersey, was formerly a subsidiary of Indian technology group Mastek. Founded in 1992, the company specialises in providing insurance technology and core system software solutions to over 120 insurance carriers globally.

Majesco said the acquisition will strengthen and expand its software offerings in for the individual life, pensions and wealth management market in Europe.

"Together, we'll focus on bringing continuous innovation to our customers, helping them take advantage of the market opportunities in insurance with cloud and digital transformation," said Adam Elster, chief executive of Majesco.

“Exaxe has accelerated the delivery of cutting-edge cloud technology to their clients and we are excited to introduce this to the already growing group of Majesco customers and prospects across Europe,” he added.