Mastek hits a new high

Mastek is on a roll. The stock yesterday hit the upper circuit at Rs.324.80 and today morning, it went on to hit a new high at Rs.363.20, with a 3.5 times surge in volumes.

The stock is up after its after its wholly owned subsidiary, Majesco announced a merger with Cover-All Technologies. The merger process is expected to be completed in the second quarter of calendar year 2015. The company plans to list Majesco on the NYSE.

Majesco is a core insurance systems and services company  and Cover-All is an insurance software company based in New Jersey. This is a 100% stock-for-stock transaction, pursuant to which Cover-All’s stockholders and the

holders of its options and restricted stock units, in the aggregate, will, upon the closing of the merger, receive 16.5% of the outstanding shares of common stock of the combined company, on a fully diluted basis. The combined entity will retain the “Majesco” brand globally.

The combined entities is expected to have over $100 million in annual revenues and over 150 insurance customers worldwide.