GFT Technologies acquires Canadian IT consultancy V-NEO

Stuttgart-based technology and outsourcing consultancy GFT Technologies has acquired Quebec-based IT consulting firm V-NEO. The acquired firm, which specializes in supporting the digital transformation of clients in the insurance industry, will complement the service offerings of GFT – a leading IT solutions provider for the international financial sector.

The insurance industry, like many others, is facing challenges as it embarks on a digital transformation process. Digital uptake is still nascent, and can take a long time (up to ten years) to implement according to research consultancy Gartner.

Quebec City-based IT consultancy V-NEO specializes in supporting the insurance industry. The firm provides strategic, design, and implementation of digital solutions for its insurance industry clients in Canada, Belgium, and France. Founded in 2011, V-NEO employs 160 people across offices in Quebec, Toronto, and Brussels. The firm is expected to post revenues of $23.5 million for the current fiscal year.

Stuttgart-based technology and outsourcing consultancy GFT announced the acquisition of the Canadian firm earlier this week. The German company is one of the world’s leading IT solutions suppliers to the finance sector. Founded in 1987, the firm has 5,500 employees across 11 countries, and was a pioneering force in IT nearshoring. The acquisition adds to its presence in Toronto, while giving it a foothold in Quebec and Brussels."The acquisition underpins our international growth strategy and medium-term forecast for 2022,” commented Marika Lulay, CEO of GFT Technologies SE. “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."

With the purchase of V-NEO, GFT bolsters its current service offerings in property, casualty, and life insurance. V-NEO is one of North America’s largest independent service providers of the Guidewire property and casualty (P&C) insurance platform. Guidewire provides core back-end software as well as analytics for insurance companies around the world.

V-NEO also supports life insurance companies with the strategy and implementation for Oracle Insurance Policy Administration for Life and Annuity (OIPA) platform. Oracle OIPA provides a modern admin system that supports policy issuing, billion, collections, processing, and claims.

"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,” said Lulay.

V-NEO’s services will be rolled into GFT’s existing insurance services portfolio, expanding the firm’s international client base. GFT will also absorb the acquired firm’s Insurance and Innovation Performance Center in Quebec, which fosters the development of innovative insurance solution using emerging technologies like artificial intelligence and the Internet of Things. The center will complement GFT’s existing global Digital Innovation Labs.

"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,” said V-NEO CEO Alain Lamothe. “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."

The financial terms of the acquisition were not disclosed.