PE and strategics circle Vitech Systems

  • Vitech hired RBC to handle inbounds
  • Vitech produces about $50 mln EBITDA
  • PE firms own Vertafore, iPipeline and Applied Systems

Vitech Systems Group has hired RBC Capital Markets to handle inbound interest from private equity and strategics, four sources said.

The New York insuretech has received “dozens of approaches” from sponsors and potential buyers, one of the sources said.

Vitech produces about $50 million Ebitda and could fetch as much as 14x to 15x, people said.

Norwest Equity Partners and Welsh, Carson, Anderson & Stowe are looking at Vitech, a second person said.

“Vitech is the only insuretech platform of scale not in private equity hands,” the first person said.

They pointed to Vertafore, which is owned by Bain Capital and Vista Equity Partners. Thoma Bravo owns iPipeline, while Applied Systems is backed by CapitalGStone Point Capital and Hellman & Friedman.

Founded in 1986, Vitech provides software to insurers. Customers include tier 1 insurers and public pension funds. It employs 850 people. Frank Vitiello is co-founder and CEO, according to his LinkedIn profile.

While there may be much interest, Vitech is not up for sale right now, the first source said. The company is in hypergrowth mode and focused on organic initiatives, this person said.

And much of the interest in Vitech was driven by firms looking to use the company as an angle to buy iPipeline, sources said. “The likelihood of a deal happening is small,” the source said.

Vitech retained Jason Gurandiano of RBC to handle the inbounds, sources said.

Vitech and RBC declined comment. NEP and Welsh Carson could not be reached.

Action Item: Contact Frank Vitiello at +1 212-868-0900