MajescoMastek, a wholly-owned subsidiary of Mastek, is increasing its focus on the North American insurance sector and expects the segment to contribute about 85 per cent of revenues in the next couple of years.
At present, the insurance sector contributes to about 75 per cent of Mastek’s North American revenues. “It’s a very deep commitment and focus on one sector, which we have been slowly building up. It’s strategic, as opposed to incidental, and the rest of the Mastek story in North America will now play around insurance,” said Ketan Mehta, co-founder of Mastek and Chief Executive Officer of MajescoMastek.
The company’s North American insurance business revolves around products and product implementation, and of the total 75 per cent, a large part is in Property and Casualty (P&C) and some in Life and Annuity (L&A).
“Our P&C business has been growing over 25 per cent on a year-on-year basis, and we expect to further accelerate that growth,” he said.
MajescoMastek, which has more than 80 customers in North America, will look at increasing customer engagements, improving eco-system and tap cross-sell opportunities. It would also look at increasing growth through partnership with system integrators and increase investments in platforms such as cloud computing and suite deals.
Suite deals are wherein most customers opt for a single vendor to offer them all products and services.
“So the deal sizes are getting larger and footprints with customers becoming deeper,” Mehta added. The company, which had done three acquisitions in North America, is also looking for further buys of firms with capabilities in consulting and analytics as part of its insurance segment focus.
“We have not earmarked a corpus, but we are looking for companies that can support our strategy. I think, our sweet spot to do an acquisition would be anywhere between $20-40 million, but might also go in for a $10-million buy, if it’s a strategic fit,” Mastek Group Chief Financial Officer Farid Kazani said.
About 46 per cent of Mastek’s revenue comes from North America, and insurance products and solution was contributed roughly about two-third of North American business.