The Mumbai-based Mastek Ltd has acquired the US-based Systems Task Group (STG) International Ltd, an IP-based provider of enterprise solutions for the property and casualty (P&C) insurance industry.

The IT solution and services company has made the recent acquirement through its wholly owned US subsidiary, MajescoMastek, in an all-cash deal valued at $29 million (around Rs 116 crore). The acquirement is being funded through bank borrowings and internal accruals.

As per the terms and conditions of the agreement, MajescoMastek will hold 100% stake in STG. The transaction is likely to be completed by June 2008

Mastek bought another insurance-focused IT company Vector Insurance Services during July 2007.

The STG acquisition would involve an 85% upfront payment, with the remainder based on future earn-outs over the next two years. Following this transaction, STG will operate as “STGMastek.”

Desikan, Group Chief Financial Officer said that the STB will allow Mastek to gain a foothold in the P&C insurance space.

Headquartered in New York, STG has a healthy customer base including more than 35 small and mid-sized American insurance carriers. With an offshore competency centre in Mumbai, STG has about 350 employees.

Mr. William McCarter, President of MajescoMastek, will take over as the President of STGMastek.

Sudhakar Ram, Chairman and MD, Mastek, said, “This acquisition is another important step in expanding our presence in both the life and non-life segments of the high opportunity US insurance market.”

For the financial year ended December 31, 2007, STG reported an EBITDA of $1.73 million on revenues of $17 million.