Key Takeaways
- • Bain Capital Private Equity and Vista Equity Partners have entered into a definitive agreement to jointly acquire Vertafore from TPG Capital, with closing expected in Q3 2016.
- • Vertafore is the market leader in insurance technology with over 45 years of industry expertise, serving more than 500,000 insurance professionals daily through flagship products including AMS360, Sagitta, ImageRight, and Sircon.
- • TPG Capital held the asset for six years prior to this transaction; prior ownership history includes acquisition by Hellman & Friedman and JMI Equity in 2004, followed by TPG's $1.4 billion purchase in 2010.
- • The co-investors selected Vertafore based on its mission-critical product offerings for insurance brokers, compelling business model, and portfolio of bundled solutions designed to improve agency management efficiency.
- • Transaction valuation and additional financial terms were not disclosed in the announcement.
Summary
Bain Capital Private Equity and Vista Equity Partners announced on May 2, 2016, that they have signed a definitive agreement to jointly acquire Vertafore, a leading insurance technology platform, from TPG Capital. The transaction is expected to close during the third quarter of 2016. No valuation or additional transaction terms were disclosed publicly.
Vertafore operates as a mission-critical software provider in the insurance industry, with over 45 years of operational history and a substantial installed base of approximately 500,000 insurance professionals utilizing its technology daily. The company's product suite spans the entire insurance value chain and includes several marquee offerings: AMS360 and Sagitta management systems, ImageRight document imaging solutions, and Sircon agency and carrier solutions. This diversified product portfolio positions Vertafore as a must-have technology vendor for insurance brokers and carriers seeking operational efficiency.
TPG Capital acquired Vertafore in 2010 for $1.4 billion, following the company's earlier ownership by Hellman & Friedman and JMI Equity from 2004. The six-year holding period under TPG Capital prepared the platform for transition to the incoming co-investors. Jeff Hawn, Chairman and Chief Executive Officer of Vertafore, characterized the deal as positioning the company for its "next phase of growth" while acknowledging TPG's stewardship over the prior six years.
Bain Capital Private Equity and Vista Equity Partners identified Vertafore's competitive positioning, product innovation track record, and bundled solution architecture as key acquisition drivers. Ian Loring, Managing Director at Bain Capital Private Equity, emphasized the company's market leadership and noted that the co-investors would focus on driving further growth and customer satisfaction. Brian Sheth, Co-Founder and President of Vista, similarly highlighted enthusiasm for Vertafore's software, information solutions, and customer base. The partnership structure between two established private equity platforms suggests a collaborative approach to scaling the insurance technology business.
Vertafore operates as a mission-critical software provider in the insurance industry, with over 45 years of operational history and a substantial installed base of approximately 500,000 insurance professionals utilizing its technology daily. The company's product suite spans the entire insurance value chain and includes several marquee offerings: AMS360 and Sagitta management systems, ImageRight document imaging solutions, and Sircon agency and carrier solutions. This diversified product portfolio positions Vertafore as a must-have technology vendor for insurance brokers and carriers seeking operational efficiency.
TPG Capital acquired Vertafore in 2010 for $1.4 billion, following the company's earlier ownership by Hellman & Friedman and JMI Equity from 2004. The six-year holding period under TPG Capital prepared the platform for transition to the incoming co-investors. Jeff Hawn, Chairman and Chief Executive Officer of Vertafore, characterized the deal as positioning the company for its "next phase of growth" while acknowledging TPG's stewardship over the prior six years.
Bain Capital Private Equity and Vista Equity Partners identified Vertafore's competitive positioning, product innovation track record, and bundled solution architecture as key acquisition drivers. Ian Loring, Managing Director at Bain Capital Private Equity, emphasized the company's market leadership and noted that the co-investors would focus on driving further growth and customer satisfaction. Brian Sheth, Co-Founder and President of Vista, similarly highlighted enthusiasm for Vertafore's software, information solutions, and customer base. The partnership structure between two established private equity platforms suggests a collaborative approach to scaling the insurance technology business.
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