Thoma Bravo to acquire Majesco for $594M

Majesco, a Morristown-based cloud insurance software provider, announced on Monday it will be acquired by Thoma Bravo, a private equity firm focused on the software and technology services sectors, in a deal worth $594 million.

Under the terms of deal, all Majesco shareholders will receive $13.10 for each share of Majesco common stock they own. Once the deal has closed, Majesco will operate as a privately-held company under the leadership of CEO Adam Elster and the existing Majesco leadership team.

“Our decision was made with the best interests of our stockholders and we believe that the transaction will also benefit our 2,400+ employees and our more than 200 customers,” Elster said. “We are extremely excited to partner with Thoma Bravo, a firm with an established track record of working with companies transitioning to the cloud. This transaction delivers significant cash value to our stockholders. Moreover, the added flexibility we will have as a private company, combined with the benefit of Thoma Bravo’s knowledge and domain expertise, can allow us to more effectively focus on our long-term investment and growth objectives, to the benefit of our employees, customers and partners. We are in alignment with Thoma Bravo on our strategic vision to help global insurers transition to the cloud.”

The proposed merger is still subject to approval by Majesco shareholders and shareholders of its parent company, Majesco Ltd. It is expected to close on or before the end of 2020.

“We see Majesco as a leader in helping its insurance customers get to the cloud faster, and modernize their internal and external facing systems,” A.J. Rohde, a partner at Thoma Bravo, said. “We have tremendous confidence that Adam Elster and his management team, coupled with our operating capabilities and experience in this market, can help these customers fulfill that journey even quicker and more ambitiously.”

Nomura Securities International Inc. is acting as the financial advisor to Majesco, and Sheppard, Mullin, Richter & Hampton LLP and Khaitan & Co are acting as legal advisors to Majesco and Majesco Ltd. Kirkland & Ellis LLP is acting as legal advisor to Thoma Bravo.