Mastek Jumps 20% on Majesco, Cover-All Tech Merger Deal

Mastek surged 20 per cent to Rs 325.20 on Monday after its wholly owned subsidiary Majesco announced a merger with Cover-All Technologies. The merger process is expected to be completed in the second quarter of calendar year 2015.

Majesco, which provides core insurance systems and services, said it has entered into a definitive merger agreement with Cover-All Technologies, an insurance software company based in Morristown, New Jersey.

The combined entities is expected to have over $100 million in annual revenues and over 150 insurance customers worldwide.

Mastek said it plans to list Majesco on the New York Stock Exchange, which will unlock value for shareholders.

Last week, Majesco had announced the signing of a definitive agreement to acquire the insurance business of Agile Technologies, LLC, which will bring additional IT consulting, data strategy and implementation expertise to Majesco.

In last two trading sessions the stock has gained nearly 25 per cent.

As of 12.15 p.m. shares in Mastek were locked at upper circuit at Rs 325.2 apiece, up 20 per cent.