Special Situation: Transition to Product Business
- Unique Insurance product business crafted from India
- Industry tailwinds and attractive valuation made it a formidable idea
- Hived off listed separately from parent (Mastek) was preparation for sale
- Partnership with IBM and solid execution on Metlife ($ 100mn contract) key testimonials to thesis
- Clear signs of M&A being a key catalyst
- Board composition and organisation design eg no second generation support thesis for sale.
- Entry MCap - $ 150 mn MCap; < 2x rev (peers at 5-10x rev in US),
- Exit $ 594 mn on 8th August 2020 to Thoma Bravo. Opens 69% up on deal.
- Full exit in India by ORC over Rs 980.