Mastek eyeing insurance buyout in N America, UK

IT major Mastek is eyeing an acquisition in the insurance vertical in North America as well as the UK, and could spend up to $50 million for the same, a senior company official said.

"Our focus is to grow in the insurance sector -- both life and general -- in these markets. We are already operating here and are talking to three-four firms for a potential buy-out. The deal size could be between $30 million and $50 million. This is our sweet spot," Mastek's Chief Financial Officer Farid Kazani told PTI here.

Mastek, which provides IT services to insurance, banking and finance firms, said it might close the deal by this year-end.

Much would, however, depend on the valuation, management and domain capabilities of the target companies, he said.

The acquisition, Kazani said, would boost the company's revenue for FY10, ending June.

Mastek is also upbeat about government projects from the UK and expects some good deals in the next three to six months, he said.

Around 80 per cent of Mastek's business comes from government projects in the UK, which witnessed a slump following the recent political crisis in that country.

"We are quite optimistic after the change in government in the UK. We are expecting to bag some major deals over the next three to six months. Next fiscal, there would be a growth in the order book and improvement in the deal pipeline," Kazani said.

He, however, did not elaborate on the matter.

Kazani said the company would be hiring about 300 professionals in this quarter (April-June). Mastek's current head count is around 3,300.