GI Partners in talks to buy Insurity

Insurity, the insurtech backed by three PE firms, looks like it will remain in private equity hands.

GI Partners is in talks to buy Insurity, four sources said.

Founded in 1971, Insurity is the Hartford, Connecticut, provider of policy administration software for the P&C insurance industry. The company produces $70 million Ebitda and was anticipated to sell for a high teens multiple, one of the four people said.

The sale was a “quick process,” another source, part of the four, said. A few PE firms having been “under cover” with Insurity, the second person said. Because Insurity has been owned by private equity for several years, “there is relatively good information [available] on the assets in the PE community,” a third person, part of the four, said.

Insurity was seen selling for $1 billion to $1.5 billion, Buyouts reported earlier this month. Lazard advised on the process, Buyouts said.

“The deal is done,” one GP, not part of the four, said.

Once the sale closes, GI Partners will be the fourth private equity firm to invest in Insurity. In 2011, Genstar Capital bought the insurance software business of LexisNexis and called the unit Insurity. Jeff Glazer, Insurity’s founder, served as CEO until 2018, his LinkedIn profile said. Chris Giglio, ex-CEO of Aderant, is chief executive of Insurity.

Genstar sold part of its stake in Insurity to TA Associates in 2014. Two years later, in 2016, General Atlantic came on board when it invested.

GI Partners, of San Francisco, invests in private equity and real estate. GI’s PE team focuses on healthcare, IT infrastructure, services and software. In 2017, GI closed its fifth flagship at $2.7 billion.

The investment firm became the latest to sell a chunk of itself to an outside investor. In March, Blackstone‘s strategic capital group acquired a minority stake in GI. Other firms that have also sold stakes include Silver Lake, Vista Equity Partners and Leonard Green & Partners.

Executives for General Atlantic, TA, and Genstar declined comment. Lazard, GI and Insurity could not be reached for comment.

*Milana Vinn contributed to this story

Action Item: For more information on GI, read their latest Form ADV here