Narayan AmmachchiGerman IT services provider GFT Technologies expanded to Canada with the acquisition of Quebec City-based V-NEO, an integrated IT solutions vendor for the insurance industry.
Founded in 2011, V-NEO employs 160 people at its three sites in Quebec, Toronto, and Brussels, and its clients include major insurers in Canada, Belgium, and France.
V-NEO has acted as a service partner for the insurance platforms Guidewire and Oracle OIPA.
Marika Lulay, CEO of GFT Technologies, says the Canadian company’s client base made it a perfect fit for GFT and its existing insurance services.
“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.”
V-NEO is expected to generate revenues of approximately CAD$23.5 million (US$17.9 million) in the current fiscal year ending July 31, 2018.
The Stuttgart, Germany-based GFT has been trying to develop new business models, focusing on topics such as blockchain, cloud engineering, artificial intelligence, and internet of things (IoT).
The Canadian company’s innovation center is the first of its kind in North America and is fully dedicated to the insurance industry.
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.”
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