High-value insurance-focused intellectual property portfolio
Alithya Group inc. is pleased to announce that it has entered into a binding agreement to acquire US-based Datum Consulting Group, LLC and its affiliates for a purchase price of up to US$45.5 million (C$57.5 million), including potential earn-out considerations of up to US$13.0 million (C$16.4 million).
Datum is a leader in IP enabled digital transformation services for data rich insurers and other regulated entities such as state governments. The Company services the world’s foremost insurers including 6 of US’ top 10 health insurers.
Founded in 2004 and headquartered in Indianapolis, the Company specializes in application modernisation and data migration with the use of leading-edge software and services focused on information capture, content management and application and rules modernization. Datum employs over 150 professionals and supports its global clients from the United States, Europe, India and Australia.
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Paul Raymond, President and Chief Executive Officer, Alithya: “I am proud to welcome Amar Bukkasagaram and the whole Datum team to the Alithya community. In Datum, we found a culture and vision in strong alignment with Alithya’s values and corporate objectives along with a global team of experts who service the world’s leading insurance companies. Datum’s highly skilled team as well as its suite of 14 proprietary products and cloud-based software as a service (SaaS) offering will help us add scale in these areas as we continue our growth and transformation initiatives. The Company serves the foremost American and European insurers, including 6 of US’ top 10 health insurers. Datum has invested to productize institutional knowledge into software products which can scale rapidly in other industries as well.”
Claude Rousseau, COO, Alithya: “Datum is a great addition to Alithya, and I look forward to working with Amar Bukkasagaram and the Datum team. Datum’s domain expertise regarding insurance industry business processes fosters a trusted advisor relationship with clients to enable impactful digital transformations. Datum’s workforce consists of insurance subject matter experts with extensive experience working with Healthcare, Property and Casualty, and Life Annuity insurance companies. This new specialized business unit will be highly complementary to our existing ones and will allow for multiple cross-selling opportunities.”
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Mr. Amar Bukkasagaram, President and Founder, Datum: “I am thrilled for Datum to be joining Alithya, a growing world-class organization. Our new business unit will contribute to the strategic global expansion by Alithya currently under way, and the synergies will allow our clients to benefit from years of R&D and co-development with insurers of our suite of 14 proprietary products, now implemented throughout our customer base. Our team brings two-sided expertise encompassing cloud and decentralized platforms, as well as current low code platforms such as PEGA and modern cloud platforms (GCP and Azure). Furthermore, the global InsurTech market is expected to grow US$1.8 billion annually to US$22.1 billion between 2019 and 2027 as per Grandview Research. Long before the COVID-19 pandemic, insurers were investing in digital transformation spurred by the rise of startups. Those investments took on new urgency as the pandemic forced businesses to abruptly shift to digital operations. We are well positioned to take advantage of this context for the benefit of our clients as part of the Alithya community.”
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