Solera explores sale to private equity

At least one of the private equity firms has arranged financing for the acquisition, the person added.

Earlier, Bloomberg News reported that Solera had approached buyout firms including Pamplona Capital Management and Thoma Bravo LLC about a possible sale.

Representatives for the Westlake, Texas-based insurance services firm and Pamplona did not immediately respond to requests for comment. A representative for Thoma Bravo declined to comment. The source asked not to be named because the talks were private.

Solera, founded in 2005, has a market capitalization of $3.25 billion and helps insurers process claims. Solera’s website says the company’s clients include the 10 largest insurance companies in Europe and the United States.

Private equity firms have been active acquirers of insurance services providers, attracted by their resilience in financial downturns. Earlier this month, Thoma Bravo acquired iPipeline, a provider of software to the life insurance industry. Last year, New York-based KKR & Co LP, bought Sedgwick Claims Management Services Inc for $2.4 billion from private equity peer Hellman & Friedman LLC.

(Reporting by Greg Roumeliotis in Athens, Reuters)