The ₹250-crore Coimbatore-based KG Information Systems Pvt Ltd, a part of the $750-million business conglomerate KG Group, has acquired Malaysian firm AETINS Sdn. Bhd through its wholly owned subsidiary in Malaysia, KG Information Systems, for an undisclosed sum. The acquisition is a part of KGISL’s growth strategy in the InsurTech space.
Aetins, which has around 250 employees, brings a range of insurance solutions for life, general and ‘Takaful’ (Islamic insurance). It serves clients in Asia Pacific, West Asia and North Africa.
KGISL has had its market presence in the Malaysia InsurTech space since 2006 and has grown with its point of sale and claims management solution for the non-life insurance segment. The acquisition will bring core insurance product and insurance solution framework into KGISL’s product offerings and open doors to enter the wider Asia Pacific, West Asia and Africa markets covering the life, non- life and Takaful insurance segments, said a release from KGISL.
Prassadh Shanmugam, Director and CEO, KGISL, said Aetins’ core insurance products, Takaful offerings and the West Asia market are the missing pieces in KGISL’s insurance offerings. “It would have taken years for us to build this capability, so the acquisition is a perfect fit for KGISL,” he said.
Speaking to BusinessLine, Shanmugam said the acquisition would be with immediate effect. Aetins’ products and solutions will alone bring over ₹200 crore revenue for KGISL in the next couple of years.
Aetins has customers in Vietnam, Pakistan, Qatar, MENA and Cambodia. The acquisition will give access to MENA markets for KGISL, which has a good presence in the Eastern markets.
KGISL currently has 260 clients, and with its new acquisition will add 30-plus larger insurance clients. Nearly 40 per cent of the company’s revenue is from the insurance space, he said.
On plans for the next four years, Shanmugam said that KGISL plans to induct 6,000 to 8,000 employees and reach revenue of around ₹1,000 crore. The company has plans to enter the UK and US markets, he said.
“We plan for an IPO in 3-4 years with employee stock options. We will continue to look for acquisition for growth,” he said.