Majesco India share price hit 5% upper circuit after the company Board agreed to sell its US subsidiary to private equity firm Thoma Bravo best known for owning J.D. Power and McAfee.
The deal will deliver significant cash value to the stockholders – Majesco India, the parent company.
The board of the directors of the Company at its meeting held on July 20, 2020 after considering the recommendations of the audit committee, approved the sale of the Company’s entire stake/ investment in the US Subsidiary pursuant to the Merger, subject to the approval of the shareholders of the company and other regulatory and statutory approvals, as may be required.
The gross value to be received by Makesco for its stake in US subsidiary in the merger is $420.66 million, compared to the total investments made by the company of $68.67 million, to date. The company has a current market capitalisation of Rs 1,100 crore.
Majesco – a Morristown, New Jersey-based company, provides software and data storage services for insurers through the cloud. Operating as a private firm should make the company more flexible, and help it focus on long-term investment and growth.
Majesco Is seen as a leader in helping insurers move to the cloud faster, and modernize their internal and external facing systems.
Post deal, Majesco India will be left with some real estate and will go through a dissolution process once sale proceeds are distributed.
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