GFT enters Canadian market with V-NEO acquisitionBy The IJ Staff | July 04 2018 11:30AM
GFT Technologies SE (GFT) announced July 3 that it has acquired V-NEO, a Quebec City-based company that provides integrated IT solutions for the insurance industry. With this acquisition, the German company has entered the Canadian market and gained a new location in Belgium.
Founded in 2011,V-NEO’s clients include major insurers in Canada, Belgium and France. It has also 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.
Revenues of about $23.5 million
V-NEO is expected to generate revenues of around CAD 23.5 million in the current financial year (August 1, 2017 to July 31, 2018). Earnings before taxes (EBT) is expected to reach approximately CAD 4.3 million. The purchase price has not been disclosed. The full transfer of shares is scheduled for the end of July 2018.
"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," stated Marika Lulay, CEO of GFT. 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."
Tapping into market potential
Alain Lamothe, CEO of V-NEO added, "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 recognize global industry trends at an early stage, tapping into the market potential together, both with our clients and our partners."