Mastek Acquires Insurance-Focused IT Company In USA

Mastek Ltd on July 16, 2007 has announced the acquisition of Vector Insurance Services LLC (Vector), a technology solutions provider and third party administrator that focuses on the North American life & annuity insurance industry. Under the terms of the agreement, the Companys wholly owned US subsidiary MajescoMastek will hold 90% equity stake in Vector. The consideration for this acquisition will be paid partly in cash and partly by way of future cash earn outs.

Vector provides policy acquisition, administration, and processing solutions to customers in the North American life insurance industry. Among its customers are two of Americas largest insurance carriers that have chosen Vector as their service provider of choice. The Company had revenues of USD4.2 million in its financial year ended December 31, 2006. The Company has 26 employees, with significant domain expertise in the insurance space. The Companys larger scale of operations and strong IP-led capabilities, combined with Vectors robust client track record and presence in the US insurance space, is expected to enable significant leverage across multiple points in the value chain. Following this transaction, Vector will operate as VectorMastek.