Majesco, a New Jersey-based provider of insurance software, has acquired Portland-based ClaimVantage, a 14-year-old company that sells cloud-based software to insurance companies. Details of the transaction were not disclosed.
ClaimVantage, founded in Portland in 2006, provides software-as-a-service (SaaS) solutions in the areas of life, health, and absence claim management to a global collection of customers, including insurance carriers, third-party administrators, and large employers. Majesco’s press release announcing the acquisition says ClaimVantage has 35 customers from the United States to Australia.
Leo Corcoran, ClaimVantage’s founder and CEO, did not respond to questions from Maine Startups Insider about the company and its acquisition. He is quoted in the press release saying the acquisition will allow his company “to deliver even greater value to our customers” and that he’s “excited” to join the Majesco team.
MSI interviewed Corcoran in 2017, which does offer some details about the “insurtech” company. In the Founder Forum interview, he revealed the company employed 35 people and had seen its annual revenue steadily climb the preceding few years, from $2 million in 2014 to $3.5 million in 2015 and $6 million in 2016—an annual percentage growth rate of nearly 70%. He also spoke about launching the company in his mid-40s, why he never raised venture capital, and how he spent $1.2 million before the company ever sent its first invoice.
It’s unclear whether the company maintained such a growth rate (if it did, its 2020 revenue would be approaching $50 million), but based on the company’s current LinkedIn page that shows 94 employees, it’s a safe bet the company has grown steadily the last three years.
There was no word on how the acquisition—and the likely redundancies it will create alongside Majesco’s existing staff—will impact ClaimVantage’s local employees.
But Corcoran also revealed to MSI in the 2017 interview that each employee received equity in the company. He said employees owned 20% of the total shares, while Corcoran retained about 70%. Which means that, depending on the purchase price, there are likely some very happy ClaimVantage employees in Portland.
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