Nasdaq-listed ExlService Holdings Inc, a business process outsourcing firm, has snapped up PDMA Inc, maker of an insurance policy administration platform which is used by around 40 global insurers. The purchase price for PDMA is $14.1 million in cash (net of working capital adjustments) and expected annualized revenues are approximately $10 million, according to a company statement.
ExlService CEO Rohit Kapoor said, in a company statement, the acquisition of PDMA will further add value to the company as it has a seasoned management team with deep insurance knowledge. “The insurance vertical remains strong. Our investment in PDMA will create greater outcome-based pricing options, which will provide mid-market insurers the flexibility to make their policy administration costs more variable and facilitate greater scalability in our business model. The acquisition is accretive to GAAP earnings per share,” he added.
This is Exl’s second acquisition in the last two months. In March, it acquired Global Travel Service Center (GTSC), the back office India operations of American Express Business Travel. In 2006, it acquired Inductis, a New Jersey-based consulting and analytics firm.
ExlService was started in 1999 by a group of professionals led by Rohit Kapoor, who is currently the president and chief executive officer of the company. In 2005, it received venture funding from Technology Crossover Ventures, and got listed in Nasdaq in 2006.
It offers solutions in decision analytics, risk and financial management and operations and process excellence services space. It currently has over 1,000 customers globally in sectors including insurance, utilities, banking & financial services, transportation and logistics and travel. In India, ExlService has offices in Noida, Gurgaon and Pune. It also has operations in US, Philippines, Czech Republic and Romania.