Nearly two weeks after iPipeline sold for a large number, another insurtech is up for sale.
NexPhase Capital has put Insurance Technologies LLC on the block, three sources said. William Blair is advising on the transaction, two of the people said.
Founded in 1995, Insurance Technologies provides software and sales automation platforms to insurance and financial services companies. The Colorado Springs, Colorado, company employs more than 250 people. Insurance Tech produces about $40 million in revenue, a different source, not part of the three, said. It is expected to sell for 6x to 7x, the person said.
The Insurance Technologies process comes just days since Thoma Bravo announced on Aug. 8 that Roper Technologies was buying iPipeline. The purchase price was $1.625 billion. IPipeline supplies cloud-based software to the life insurance and financial services industry. The company produces $70 million to $90 million Ebitda, Buyouts reported. It is believed to have sold for roughly 20x Ebitda, one of the sources said. “It looks like someone is trying to ride on the tail of iPipeline,” one banker said of the Insurance Tech auction.
Another insurtech sold in June. GI Partners acquired Insurity, a provider of insurance software, from firms including General Atlantic, TA Associates and Genstar. Insurity was expected to sell for $1.2 billion to $1.5 billion, Buyouts reported.
The Insurance Technologies process represents the culmination of a nearly five-year hold for Moelis Capital Partners, which acquired a controlling stake in Insurance Tech in December 2014. It’s unclear how much Moelis invested. Two years later, in December 2016, Deerpath Capital Management provided financing to back the recap of Insurance Technologies, PitchBook said.
Moelis Capital has changed since its founding 2007. In January 2016, Moelis Capital executives launched NexPhase, a lower middle market PE firm. NexPhase oversees Moelis Capital legacy investments, a statement from that time said. NexPhase is led by managing partners Kurt Larsen and Ted Yun, who were also managing partners at Moelis Capital. The New York firm targets companies with Ebitda between $5 million and $30 million, in healthcare, software and services, and consumer.
William Blair declined comment. Executives for NexPhase and Insurance Technologies could not be reached for comment.
Action Item: For more information, contact Insurance Technologies CEO David Fenimore by emailing him here.