03.07.2018
GFT Technologies SE DE0005800601
DGAP-News: GFT Technologies SE: GFT acquires Canadian IT specialist V-NEO, focused on the insurance industry
DGAP-News: GFT Technologies SE / Key word(s): Mergers & Acquisitions
GFT Technologies SE: GFT acquires Canadian IT specialist V-NEO, focused on
the insurance industry
03.07.2018 / 18:32
The issuer is solely responsible for the content of this announcement.
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Joint press release
GFT acquires Canadian IT specialist V-NEO, focused on the insurance industry
* As a result of the acquisition, GFT will enter the Canadian insurance
market, expand its market position in North America and gain a new site
in Belgium
* V-NEO develops integrated IT solutions and implements Guidewire services
for leading insurance companies in Canada, Belgium and France
* 160 employees will strengthen GFT's industry expertise with a focus on
digital applications within the property, casualty and life insurance
sectors
Stuttgart / Quebec, 3 July 2018 - GFT Technologies SE (GFT) today approved
the full acquisition of all shares of V-NEO Inc. (V-NEO), based in Canada.
The company is an experienced services provider of integrated IT solutions
for the insurance industry. Its clients include numerous major insurers in
Canada, Belgium and France. V-NEO has also acted as a service partner for
the insurance platforms Guidewire and Oracle OIPA. Founded in 2011, the
company employs 160 people at its three sites in Quebec, Toronto and
Brussels. With 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 company is expected to generate revenues of around EUR 15.5 million in
the current financial year (1 August 2017 to 31 July 2018). Earnings before
taxes (EBT) is expected to reach approximately EUR 2.6 million. The purchase
price will be paid in cash and the two parties agreed not to disclose the
purchase price. The full transfer of shares is scheduled for the end of July
2018. As a result of the first-time consolidation in August 2018, GFT
expects additional revenues of around EUR 7 million for this financial year.
Due to the acquisition-related expenses, V-NEO will not make a significant
contribution to GFT earnings in 2018. Further details will be disclosed in
the Half-year Financial Report published on 9 August 2018.
At the contract signing, Marika Lulay, CEO of GFT Technologies SE, stressed
that: "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."
Reinforcement with regard to property, casualty and life insurance
The insurance industry is facing enormous challenges in the midst of the
digital transformation process. According to Gartner, only a few insurers
worldwide have initiated their digital transformation so far; and such
changes can take up to ten years to achieve. V-NEO has in-depth expertise -
especially regarding digital solutions for property, casualty and life
insurance. This includes both strategic consulting as well as all steps from
initial design to the implementation of solutions. The company boasts a high
customer loyalty rate with national and international clients, driven by its
bespoke architecture enterprise solutions and projects for process
optimisation and digital transformation. The acquisition enables GFT to
complement its current services portfolio for property and casualty
insurance with expanded and new solutions for the life insurance sector.
V-NEO has already received numerous innovation awards for its agile
integration of Guidewire services. As one of the largest independent North
American services providers for the Guidewire insurance platform, the
company currently generates around two-thirds of its revenue with this
offering. V-NEO also works on a major Canadian life insurance project with
OIPA Oracle platform. These services will now be combined with GFT's
existing insurance services in order to expand its international client
base.
Innovation in the DNA of both companies
V-NEO was the first North American firm to initiate an 'Insurance Innovation
and Performance Centre', which is specifically designed for innovation
development and the training of employees in the insurance sector. The
centre puts into practice the development, piloting and market roll-out of
new insurance solutions involving all aspects of artificial intelligence and
the Internet of Things. Combined with the existing global Digital Innovation
Labs of GFT, the innovation management within GFT will be enhanced and taken
to the next level.
Diversification of client portfolio
Alain Lamothe, CEO of V-NEO stated that: "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. The international GFT presence enables us to recognise
global industry trends at an early stage, tapping into the market potential
together, both with our clients and our partners."
Lulay added: "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."
About GFT:
As an experienced technology partner, GFT Technologies SE (GFT) is committed
to driving the digital transformation of the financial services industry.
Drawing on our extensive knowledge of the sector, we advise the world's
leading financial institutions and develop bespoke IT solutions - from
banking applications and trading systems to the implementation and support
of complete platforms, and the modernisation of core banking systems. Our
global innovation team also develops new business models, focusing on topics
such as blockchain, cloud engineering, artificial intelligence and the
internet of things across all sectors.
www.gft.com
About V-NEO:
Founded in 2011, V-NEO is a Business Advisory & Technology consulting firm
focused exclusively on Insurance, headquartered in Canada (Quebec City) and
having activities in North America and in Europe. V-NEO's primary mission is
to add value in organisations through its Global Insurance end-to-end
digital and legacy transformation specialist that delivers comprehensive
insurance solutions and expert services. V-NEO provides Strategic Business
Advisory, Programme Management, Solution Architecture, Implementation /
Migration / Configuration / Upgrade and Agile Development practices. V-NEO
leverages its dedicated Centre of Performance and Excellence, through a
global delivery model that provides insurance services, specialised
implementation capabilities and thought leadership around legacy
transformation, digital innovation and in-house training.
www.v-neo.com
Technology Holdings advised V-NEO on the transaction
Press contacts:
Andrea Wlcek Global Head of Marie-Hélène Bouchard
Communications GFT Technologies Communications V-NEO Inc. 990.
SE Schelmenwasenstraße 34 70567 Avenue de Bourgogne Québec,
Stuttgart, Germany Phone: +49 711 Canada, G1W 0E8 Phone: +1
62042-1440 E-mail: 418-780-0801 E-mail:
[1][email protected] 1. [1][email protected]
mailto:[email protected] 1.
mailto:marie-helene.bouchard@v-neo
.com
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The issuer is solely responsible for the content of this announcement.
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Language: English
Company: GFT Technologies SE
Schelmenwasenstraße 34
70567 Stuttgart
Germany
Phone: +49 (0)711/62042-0
Fax: +49 (0)711/62042-301
E-mail: [email protected]
Internet: www.gft.com
ISIN: DE0005800601
WKN: 580060
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart, Tradegate Exchange
End of News DGAP News Service
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701183 03.07.2018
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