 "Mastek rallies on merger of Cover-All Technologies with Majesco")
Mastek has rallied 16% to Rs 314 on National Stock Exchange (NSE) after Majesco, the insurance arm and a wholly owned subsidiary of the company announced its plans to merge Cover- All Technologies with itself in a 100% stock for stock transaction.
Majesco (formerly known as Majesco Mastek) plans to list Majesco on the NYSE-MKT subject to regulatory and shareholder approvals.
Majesco (formerly known as Majesco Mastek) plans to list Majesco on the NYSE-MKT subject to regulatory and shareholder approvals.
The decision to merge the two businesses is the latest step in the execution of Majesco’s aggressive growth strategy to consolidate its global insurance business under a single and separate entity, Mastek said in a press release.
Last week, Majesco announced the signing of a definitive agreement to acquire the insurance business of Agile Technologies, LLC, bringing additional IT consulting, data strategy and implementation expertise to Majesco.
The transaction is expected to close in the second quarter of 2015. Both companies will continue to operate as independent entities until then, it added.
The stock opened at Rs 270 and touched a low of Rs 267 in early morning trade on NSE. The trading volumes on the counter more than doubled with a combined 1.67 million shares changed hands till 1050 hours on NSE and BSE.