i-flex Solutions Ltd on October 05, 2007 has announced that it has acquired a 100% stake in Castek Software Inc. i-flex board has approved the acquisition today and the transaction is expected to close by March 2008.
Headquartered in Toronto, Canada, Castek is a provider of core insurance-business processing systems for large- and mid-sized Property and Casualty (P&C) insurers.
In August 2005, i-flex had entered into an equity financing arrangement with Castek, that allowed i-flex to become its largest shareholder. Since then, i-flex held 59.9% of Casteks shares on a fully diluted basis. On completion of the latest transaction, i-flex will own all the outstanding shares of Castek and it will become a wholly-owned subsidiary of i-flex.
Casteks product is proven and is being used by two large North American customers. With i-flexs wide market reach, the potential to expand is now great. Ever since we forayed into insurance a couple of years ago, we can offer insurance Companies a scalable model of onsite, near shore and offshore services. Our full service dedicated units focus on both technology and business solutions, i-flex also has a dedicated Competency Center around the Insure3 platform, says N R K Raman, Managing Director and CEO, of the Company.
Casteks flagship product Insure3 [pronounced Insure Cube] - is a SOA based Full Policy Lifecycle administration software which is delivered through a platform of best-of-breed, pre-integrated software components.
Celent, a Boston based research firm, forecasts that globally P&C insurance carriers will spend more than USD39 billion on software and services in 2008.
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