Bain Capital Private Equity and Vista Equity Partners will jointly acquire insurance technology company Vertafore from TPG Capital. The deal comes shortly after Vertafore’s acquisition of two cloud software providers, Keal Technology and QQSolutions.
Vertafore, the leader in modern insurance technology, today announced that funds affiliated with Bain Capital Private Equity and Vista Equity Partners have entered into a definitive agreement to jointly acquire the company from TPG Capital. The sale is expected to close during the third quarter. Additional terms of the transaction were not disclosed.
“We are thrilled to be working with two great private investors like Bain Capital Private Equity and Vista Equity Partners to fuel the future growth of Vertafore, and are looking forward to a great partnership that will benefit our customers, our employees, and our industry,” said Jeff Hawn, Chairman & CEO at Vertafore. “We are also thankful for the strong leadership and support from TPG over the past six years and appreciate all they’ve done to prepare us for the next phase of our company’s growth.”
With over 45 years of deep industry expertise, more than 500,000 insurance professionals trust Vertafore® technology every day across each point of the insurance value chain, utilizing solutions in the company’s product portfolio including leading products such as the AMS360® and Sagitta® management systems, ImageRight®, and Sircon® agency and carrier solutions.
“Vertafore is a market leader with mission critical product offerings for insurance brokers and a compelling business model,” said Ian Loring, a Managing Director at Bain Capital Private Equity. “The company has been at the forefront of product innovation and bundling solutions to help make agency management more efficient. We look forward to partnering with Vertafore to drive further growth and customer satisfaction.”
“Vista is enthusiastic about Vertafore’s software and information solutions, employees, and the vast customer base they serve today,” said Brian Sheth, Co-Founder and President of Vista. “We’re eager to work with the team to continue to develop best-in-class products and services for the insurance industry, grow the business, and expand market share.”
“It’s been a privilege to be a part of Vertafore’s tremendous growth over the last six years,” said Bryan Taylor, Partner at TPG Capital. “Vertafore has become a clear leader in the industry by expanding its product line, strengthening its workforce, and putting increased resources toward R&D. Today’s announcement is the result of many years of hard work and the culmination of a great partnership with Jeff and the Vertafore management team.”
BofA Merrill Lynch is serving as the exclusive financial advisor and Ropes & Gray LLP as the legal advisor to Vertafore and TPG in connection with the transaction. Credit Suisse is providing the financing commitments and acting as financial advisor to Bain Capital Private Equity and Vista. Kirkland & Ellis LLP is acting as legal counsel and EY LLP is serving as accounting advisor to Bain Capital Private Equity and Vista. The transaction is subject to customary regulatory review.
The acquisition of Vertafore comes just a month after Vertafore expanded its reach and capabilities by acquiring Keal Technology in Canada, and less than a year after the purchase of QQSolutions in Florida, both providers of cloud software to independent insurance agencies. The company delivered over 250 new product releases in 2015, bringing new technology and innovation to the industry’s largest customer base, including agencies, carriers, MGAs, MGUs and over half the U.S. state regulatory agencies.
Vertafore offers the broadest and most adaptable technology solutions to better prepare the insurance industry for digital disruption. The Vertafore product line is built on a platform, empowering customers and other solution providers to adapt and thrive as the market changes. Vertafore’s platform features fast innovation, partnerships with the best technology companies, and customizable solutions to help companies remain independent during a time of industry disruption. As the leader in modern insurance technology with the largest customer base in the industry, Vertafore connects every point of the distribution channel, from agencies and carriers to MGAs, MGUs, and state governments. For more information about Vertafore, visit www.vertafore.com, read the company’s blog, and follow the company on Twitter, LinkedIn, and Facebook.
About TPG Capital
TPG Capital is a leading global private investment firm founded in 1992 with over $70 billion of assets under management and offices in San Francisco, Fort Worth, Austin, Dallas, Houston, New York, Beijing, Hong Kong, Istanbul, London, Luxembourg, Melbourne, Moscow, Mumbai, São Paulo, Singapore, and Tokyo. TPG’s investment platforms are across a wide range of asset classes including private equity, growth venture, real estate, credit, and public equity. TPG aims to build dynamic products and options for its investors while also instituting discipline and operational excellence across the investment strategy and performance of its portfolio. For more information, visit www.tpg.com. About Bain Capital Private Equity Bain Capital Private Equity has partnered closely with management teams to provide the strategic resources that build great companies and help them thrive since our founding in 1984. Our team of more than 400 investment professionals creates value for our portfolio companies through our global platform and depth of expertise in key vertical industries including consumer/retail, financial and business services, healthcare, industrials, and technology, media and telecommunications. In addition to private equity, Bain Capital invests across asset classes including credit, public equity and venture capital, and leverages the firm’s shared platform to capture opportunities in strategic areas of focus. For more information visit www.baincapitalprivateequity.com.
About Vista Equity Partners
Vista, a U.S.-based private equity firm with offices in Austin, Chicago and San Francisco, with more than $20 billion in cumulative capital commitments, currently invests in software, data and technology-based organizations led by world-class management teams with long-term perspective. Vista is a value-added investor, contributing professional expertise and multi-level support towards companies realizing their full potential. Vista’s investment approach is anchored by a sizable long-term capital base, experience in structuring technology-oriented transactions, and proven management techniques that yield flexibility and opportunity in private equity investing. For more information, please visit www.vistaequitypartners.com.