Clearlake strikes deal for Aurora’s Zywave

The deal, which was signed in the past few days, assigns Zywave a valuation between $800m and $900m, sources told PE Hub.

Clearlake Capital is set to acquire insurtech provider Zywave from Aurora Capital, sources familiar with the deal told PE Hub.

The deal, which was signed in the past few days, assigns Zywave a valuation between $800 million and $900 million, the people said.

William Blair acted as a sell-side advisor on the deal.

Zywave, based in Milwaukee, is a software-as-a-service (SaaS) technology provider for the employee benefits and property and casualty (P&C) insurance distribution industry.

The company generates $54 million in EBITDA and has been growing in the high single digits year-over-year, the sources said. Zywave is currently in the process of closing on a few transactions that will further boost its revenue, they added. 

For Aurora Capital, Zywave marks a nearly seven-year hold. The firm acquired the company in December 2013 from Vista Equity.

Insurtech has been among the hottest areas of PE investment in recent years.

A few days ago, Thomas H. Lee acquired Insurance Technologies, a provider of sales and regulatory automation solutions for the insurance and financial services industries. The deal provided an exit for NexPhase Capital. 

In August, Bain Capital and Vista Equity announced the sale of insurance software maker Vertafore, finding a buyer in Roper Technologies in a $5.3 billion deal.

Around the same time, Apax Partners-backed Duck Creek Technologies debuted on the Nasdaq. On its first day of trading, the company raised as much as $405 million in its upsized initial public offering. The IPO valued Duck Creek, a software company serving the property and casualty insurance sector, at $3.46 billion.

Elsewhere, TA Associates last year sold Insurity, a provider of core insurance processing and data solutions, to GI Partners. 

Spokespeople with Aurora Capital and William Blair did not return PE Hub’s requests for comment. Clearlake and Zywave declined to comment.

Action Item: See Clearlake Capital’s latest form ADV.