Paytm, owned by One 97 Communications Ltd, along with its founder Vijay Shekhar Sharma on Monday announced the acquisition of Mumbai-based private sector general insurance company Raheja QBE, a company statement said.

Raheja QBE, which started its operations in 2009, is a joint venture between Prism Johnson Limited and QBE Insurance Group, one of Australia’s largest insurers.

“Raheja QBE is owned 51 per cent by Prism Johnson and 49 per cent by QBE Australia. Paytm is set to acquire both stakes and would own 100 per cent of the company,” Paytm said in a statement.

The company, however, did not disclose the financial details of the transactions.

Prism Johnson Ltd approved divestment of its entire holding of 51 per cent in Raheja QBE General Insurance Company Limited (RQBE) to QORQL Private Limited, a technology company with majority shareholding by Sharma and the remaining held by Paytm (owned by One97 Communications Limited), for an aggregate consideration of Rs 289.68 crore.

The acquisition is subject to customary conditions, including approval from the Insurance Regulatory and Development Authority of India (IRDAI), the statement added.

QORQL Pvt Ltd, is a technology company with majority shareholding of Vijay Shekhar Sharma and remaining held by Paytm.

“It is an important milestone in Paytm’s financial services journey, and we are very excited to welcome Raheja QBE General Insurance into the Paytm family.

“Its strong management team will help us accelerate our journey of taking insurance to the large population of India with the aim to create a tech-driven, multi-channel general insurance company with innovative and affordable insurance products,” said Amit Nayyar, President at Paytm.

Commenting on the development, QBE Australia Pacific Chief Executive Officer, Vivek Bhatia said, “today’s announcement marks both a continuation of QBE’s strategy to simplify our business and the beginning of a new & exciting chapter for our strong team at Raheja QBE.”

Prism Johnson said the consideration to be received by the company for the divestment is subject to certain adjustments which may be carried out between the date of execution of definitive agreement and closure of the sale, and other customary terms for a sale of such nature.

The divestment will result in the termination of the company’s joint-venture with Australia’s QBE in the general insurance business in India. Post the Divestment, RQBE will also cease to be a subsidiary of the company,” Prism Johnson added.

Raheja QBE which started operations in 2009, is a joint venture between Prism Johnson Ltd and QBE Insurance Group, one of Australia’s largest insurers.