Genstar Capital has sold a “significant” stake in Insurity to TA Associates. No financial terms were disclosed. Spurrier Capital Partners was financial advisor to Insurity on the transaction while Ropes & Gray represented Genstar. Also, TA Associates will be joining Genstar on Insurity’s board of directors. Based in Hartford, Conn., Insurity is a provider of core insurance processing, data integration and analysis solutions.
SAN FRANCISCO, November 4, 2014 – Genstar Capital, a leading middle market private equity firm that focuses on investments in targeted segments of the industrial technology, financial services, software, and healthcare industries, today announced that it has sold a significant interest in Insurity, a provider of core insurance processing and data integration and analysis solutions, to TA Associates.
Genstar acquired the Insurance Software Solutions business of LexisNexis in 2011 and, working with founder Jeffrey Glazer, established it as an independent company and rebranded it as Insurity. Mr. Glazer joined Insurity as President and Chief Executive Officer.Headquartered in Hartford, Insurity provides policy administration, claims, billing, and analytics software to more than 100 insurance companies, including Scottsdale Insurance, Philadelphia Insurance Companies, and Munich Re. 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 who heads the firm’s financial services practice, said, “This successful investment in Insurity is a great example of the Genstar playbook in action. We leveraged our expertise and executive network across the financial services and software verticals to identify a unique investment opportunity; we partnered with a great management team; we augmented the board with experienced industry executives from our network; and we provided the capital to make strategic product investments and complete an accretive acquisition. We are thrilled with the success of the Company and are excited to continue as investors and partners with Insurity and TA Associates.”
TA Associates is joining Genstar on the Board of Directors, who will continue to be represented by Mr. Clark.
Mr. Glazer commented: “With the support of a committed team at Genstar, and as an independent company with a new name, we were able to begin the transformation of the company. Combining world class customer satisfaction with leading technology proved to be the winning formula in helping us expand our customer relationships and drive double-digit revenue growth and more than triple our profitability. We see continued opportunities to expand into synergistic new product offerings, in addition to further strengthening our core business.”
Genstar has driven significant value across its portfolio in 2014 and Insurity represents the fourth successful investment realization for Genstar Capital this year. The firm sold Evolution1®, an industry leader in consumer directed health payments and technology; ConvergeOne, a leading independent provider of innovative communications solutions and managed services to enterprises globally, and; TravelClick, a global provider of innovative cloud-based software solutions to the hospitality industry.
Spurrier Capital Partners served as financial advisor to Insurity and Ropes & Gray served as legal counsel. Goodwin Procter LLP provided legal counsel to TA Associates.
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 manages funds with total capital commitments of over $3 billion and targets investments focused on selected sectors within the industrial technology, financial services, software, and healthcare industries.