TPG To Buy Vertafone for $1.4 Billion

NEW YORK (Reuters) – Private equity firm TPG Capital agreed on Thursday to buy Vertafore, which provides software and services to the insurance sector, from rivals Hellman & Friedman and JMI Equity for a total of $1.4 billion.

Hellman & Friedman, which has raised more than $25 billion of committed capital since its founding in 1984, bought Vertafore in 2004, along with JMI as its co-investor.

Private equity firms typically try to exit investments in three to five years, but the credit crisis and recession have meant it has taken longer to sell or float many portfolio companies.

In the past months, deal flow has picked up as buyers become able to finance transactions again.

A number of deals have been cliched in which private equity players buy portfolio companies from each other, such as Goldman Sachs Group Inc’s (GS.N) recent $1.7 billion deal to buy food supplier Michael Foods from rival Thomas H. Lee Partners THL.UL. Goldman Sachs has a significant private equity unit.

JMI focuses on investing in software, Internet and business services companies.

TPG, founded in 1992, has $48 billion under management.

The deal is expected to close in the third quarter. Other terms of the deal were not disclosed.

Barclays Plc’s (BARC.L) Barclays Capital advised Vertafore and Credit Suisse (CSGN.VX) advised TPG. (Reporting by Paritosh Bansal and Megan Davies, editing by Matthew Lewis and Gerald E. McCormick)