German company GFT Technologies SE (GFT) announced July 3 that it’s acquired Quebec City-based V-NEO, a company that provides integrated IT solutions for the insurance industry.
V-NEO’s technological savvy and existing client base made it a perfect fit for GFT and its existing insurance services, according to Marika Lulay, CEO of GFT Technologies SE.
“The acquisition underpins our international growth strategy and medium-term forecast for 2022,” she said in a statement. “The acquisition of V-NEO is a decisive step towards positioning GFT as a leading IT partner for the digital transformation of the insurance industry, as it is already for the banking sector.”
Founded in 2011, V-NEO has acted as a service partner for the insurance platforms Guidewire and Oracle OIPA. The company employs 160 people at its three sites in Quebec, Toronto and Brussels, and its clients include major insurers in Canada, Belgium and France. The company is expecting to generate revenues of approximately $23.5 million CAD in the current fiscal year ending July 31, 2018. As a result of the acquisition, GFT has also gained a new office in Belgium. The purchase price of the V-NEO has not been disclosed.
According to a 2015 study from Gartner, more than 70 per cent of tier 1 and 2 insurers in mature markets have started their digital transformation journey, but few have made great inroads, most struggling to gain the proper know-how around big data management.
Alain Lamothe, CEO of V-NEO said the acquisition allows them to unlock the full potential of the insurance market.
“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,” he said. “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.”