Quebec insurance IT provider V-NEO acquired by German-based tech company

German-based tech provider GFT Technologies SE (GFT) has acquired V-NEO Inc. (V-NEO), a Quebec-based IT provider to the Canadian property and casualty insurance industry.

Founded in 2011, V-NEO has acted as a service partner for the P&C insurance Guidewire platform. Headquartered in Quebec City, the company employs 160 people at its three sites in Quebec, Toronto and Brussels. V-NEO is expected to generate revenues of around $23 million in the current financial year (August 2017 to the end of July 2018), according to GFT.

Financial terms of the acquisition were not disclosed. The full transfer of shares to GFT is scheduled for the end of July 2018.

“The acquisition underpins our international growth strategy and medium-term forecast for 2022,” Marika Lulay, CEO of GFT Technologies SE, said in Tuesday’s announcement of the acquisition.

“The technological know-how and the client base of V-NEO are a perfect fit for GFT – as are its highly skilled onsite client consultants in North America and Europe, as well as the nearshore development teams in Canada.”

As a result of the acquisition, GFT, which has offices in 11 different countries, will enter the Canadian insurance market. It will also expand its market position in North America and gain a new site in Belgium. GFT’s global innovation team develops new business models, focusing on topics such as blockchain, cloud engineering, artificial intelligence and the Internet of Things across all sectors.

V-NEO’s clients include numerous major insurers in Canada, Belgium and France. Its Center for Innovation and Performance in Insurance, the first of its kind in North America, is fully dedicated to the insurance industry.

The Center for Innovation is specifically designed to develop innovation initiatives, as well as to train employees in the insurance sector. It’s a place to develop, pilot and market the roll-out of new insurance solutions involving all aspects of artificial intelligence and the Internet of Things.

V-NEO has received innovation awards for its integration of Guidewire services, having completed more than 15 Guidewire implementations across all modules. “As one of the largest independent North American service providers for the Guidewire insurance platform, the company currently generates around two-thirds of its revenue with this offering,” GFT observes.

David Gambrill