GFT Technologies SE in the UK has approved the full acquisition of all shares of V-NEO, a Canadian provider of integrated IT solutions for the insurance industry.
V-NEO’s clients include some of the biggest insurers in Canada, Belgium, and France. The company has also acted as a service partner for the insurance platforms Guidewire and Oracle OIPA. Founded in 2011, V-NEO currently has 160 employees across its three sites in Quebec, Toronto, and Brussels.
A release said that through the acquisition of V-NEO, “GFT strengthens its expertise in the insurance sector, expands its market position in North America and gains a new location in Belgium.”
The purchase price will be paid in cash; both parties have agreed not to disclose the price.
As part of the consolidation, which closes August 2018, GFT expects additional revenues of about $11 million for this financial year. V-NEO will not make a significant contribution to GFT’s earnings in 2018 due to acquisition-related costs.
“The acquisition underpins our international growth strategy and medium-term forecast for 2022. The technological know-how and the client base of V-NEO are a perfect fit for GFT - as are its highly skilled on-site client consultants in North America and Europe, as well as the nearshore development teams in Canada,” said GFT Technologies SE CEO Marika Lulay during the contract signing.
“With our deep insurance know-how and our technological skills, we are not just a perfect fit for each other, but will also help diversify GFT’s customer portfolio with our long-lasting client relationships,” added V-NEO CEO Alain Lamothe in a statement. “The international GFT presence enables us to recognize global industry trends at an early stage, tapping into the market potential together, both with our clients and our partners.”
