Mid-market private equity firm Genstar Capital, is to acquire the LexisNexis Insurance Software Solutions business, a provider of software and services to the property and casualty insurance industry. The transaction is subject to customary government approvals and closing conditions and is expected to be completed in the fourth quarter.
Genstar Capital, LLC, a middle market private equity firm that focuses on investments in selected segments of the insurance and financial services, software, life sciences, healthcare, and industrial technology industries, today announced the signing of a definitive agreement to acquire the LexisNexis Insurance Software Solutions business, a leading provider of software and services to the Property and Casualty insurance industry.
Genstar is partnering with Jeffrey Glazer, who initially founded the business, to carve out the insurance software solutions business from LexisNexis Risk Solutions. Upon completion of the transaction, Mr. Glazer will serve as President and CEO of the independent company which Genstar expects will be renamed Insurity, Inc.
Insurity, headquartered in Hartford, Connecticut, provides policy administration, claims, billing, and analytics software to more than 100 insurance companies. Insurity customers, who write Personal Lines and Commercial Lines insurance, represent over $12 billion of commercial insurance premium processed through the Insurity suite of products.
J. Ryan Clark, Managing Director of Genstar, said, “We are excited to be partnering with Jeffrey and his experienced management team to leverage Insurity’s industry leading software and service assets to drive growth both organically and through acquisitions. The combination of our capital resources and operating expertise and management’s strong capabilities and experience will position the Insurity team to accelerate its growth and profitability.” Genstar Managing Director Mark Hanson commented, “Genstar looks forward to bringing its technology and industry expertise to the company to help bring it to another level of market segment leadership and service.”
Mr. Glazer, who presently serves as CEO, Insurance, LexisNexis, stated that he “was thrilled to be reunited with the Insurity team and excited to be providing new capabilities to their strong and premier customer base. With Genstar’s capital, industry advisors, and technology expertise, Insurity can continue to leverage its core leadership position and software and service capabilities to expand its relationships with its existing customers and attract new customers.”
Genstar has previously invested in the insurance vertical. Since 2008 the firm has been building Confie Seguros into the leading national insurance distribution company primarily focused on the insurance needs of the Hispanic consumer. In addition, Genstar in 2010 invested in Granite Global Solutions, a leading Canadian provider of risk mitigation services to insurance and corporate clients.
The transaction is subject to customary government approvals and closing conditions and is expected to be completed in the fourth quarter.
About Genstar Capital, LLC
Genstar Capital (www.gencap.com) is a leading private equity firm that has been actively investing in high quality companies for more than 20 years. Based in San Francisco, Genstar works in partnership with its management teams and its network of operating executives and strategic advisors to transform its portfolio companies into industry-leading businesses. Genstar has more than $3 billion of committed capital under management and targets investments focused on selected sectors within the life science, healthcare services, software and software services, insurance and financial services, and industrial technology industries.