"The acquisition of Entegram, located just outside of Hartford, provides MajescoMastek a foothold in that city," said Sudhakar Ram, chief executive officer of Mastek Ltd. "It is another step MajescoMastek is taking to develop our business in providing distribution management services to the life and health insurance industries as a core competitive strength."
The purchase price for the privately owned Entegram was $750,000 in cash up front, plus a two-year cash earnout that could bring the total to $2 million, the company said.
MajescoMastek, headquartered in Edison, N.J., is the U.S.-based operation of Mastek, a global IT applications solutions company founded in India in 1982, with sales of $130 million last year and more than 2,700 employees.
"We expect this acquisition to be accretive to our top and bottom lines during the first year as our resources enable Entegram to expand its customer relations and to further penetrate key industries," Ram said.
Based in Windsor, Conn., Entegram brings existing client relationships with large, multi-national corporations, including United Technologies, Automatic Data Processing, Inc. and Barnes & Noble.
"Entegram will initially maintain its own identity, and its management has agreed to remain with the company," he added. "Located just outside Hartford, Entegram brings MajescoMastek a strategic presence in America's insurance capital and a client base that includes major insurance and non-insurance companies. Entegram's demonstrated ability to establish and maintain client relationships like these furthers our strategy of serving as the virtual IT partner of Fortune 1000 companies."
Entegram offers flexibility and service in the support of a number of technology applications. The company has built a loyal customer base in the Connecticut region and will continue to serve its customers with enhanced abilities enabled by the acquisition.
"As a growing company in the Connecticut region, Entegram followed a natural progression in expanding what we can offer to our customers," said Ramesh Mugalam, president and chief executive officer of Entegram, who founded the company in 1997. "Joining them will ensure our continued growth and success in both our current markets and new ones through access to Mastek's capital base and offshore development capabilities."
Entegram is a Connecticut-based software development, support and systems integration company. Its clients include Automatic Data Processing, Inc., Barnes & Noble and United Technologies. Entegram's core competencies lie in the areas of application development and maintenance, ERP support, staff augmentation and outsourcing. www.entegram.com
MajescoMastek, the U.S. subsidiary of Mastek Ltd., the global technology solutions provider, currently generates over $15 million per year in insurance-related software and services specializing in the life, annuity and health insurance sectors. The firm combines deep business understanding and years of global experience in the insurance sector. The firm differs in its approach to the insurance industries by offering legacy applications maintenance and replacement. Working with a number of top U.S. insurance companies, the firm is building a reputation as a world-class provider of vertically-focused solutions and resources. www.majesco.com/insurance
A publicly held, global IT application outsourcing company founded in 1982, Mastek (www.mastek.com) is listed on India's national stock exchange (NSE: Mastek.NS). It delivers cost-effective, quality solutions that meet customized requirements of Fortune 1000 organizations worldwide. With world headquarters and its principal offshore delivery facility in Mumbai, India, the company maintains operating offices in the U.S., Europe, Japan, India and the Asia Pacific region.
For its fiscal year ending June 30, 2005, Mastek reported total revenue of $106.4 million, up 33 percent from the prior year, and net income of $12.6 million, up 125 percent from $5.6 million the prior year. Per share earnings (fully diluted) for 2005 were $0.90 based on 14.03 million average outstanding equity shares, compared with $0.39 for 2004 based on 14.31 million average outstanding equity shares. The company reports in conformity with U.S. Generally Accepted Accounting Principles (U.S. GAAP).