Thoma Bravo — a private equity firm that has been active in the life insurance technology world before — said Monday that it has agreed to acquire Majesco for $594 million in cash and operate the company as a privately held company.
Majesco is a Morristown, New Jersey-based company that provides software and data storage services for insurers through the cloud.
Thoma Bravo is a Chicago-based investment firm that may be best known for owning J.D. Power and McAfee. It acquired iPipeline, a life insurance software and technology services firm, from three venture capital firms, in 2015, for $420 million, then sold iPipeline to Roper Technologies, in August 2019, for $1.6 billion.
Majesco has been a publicly traded company since 2015, with stock trading on Nasdaq, under the stock symbol MCJO.
Majesco has about 2,400 employees. It reported $3.6 million in net income for the latest quarter of its fiscal year, which ended March 31, on $38 million in revenue.
Majesco recently agreed to acquire InsPro, the company that offers the InsPro Enterprise marketing and policy administration system, for $12 million.
Right before Thoma Bravo and Majesco announced their proposed deal, Majesco’s stock was trading for about $7 to $8 per share, giving the company a market capitalization level, or total stock value, of about $330 million.
The companies said Thoma Bravo will carry out the deal by paying Majesco shareholders $13.10 cash per share of common stock.
The price is about 74% over Majesco’s average closing stock price for the 30-day trading period ending July 17, the companies said.