Genstar Capital has sold a majority interest in Insurity, a provider of insurance processing and data services, to TA Associates.
In 2011, Genstar acquired the Insurance Software Solutions business of LexisNexis and, working with founder Jeffrey Glazer, established it as an independent company and rebranded it as Insurity. Today, Insurity provides policy administration, claims, billing, and analytics to more than 100 insurance companies operating in the property & casualty insurance industry. Customers include Scottsdale Insurance, Philadelphia Insurance Companies, and Munich Re. Insurity is headquartered in Hartford, CT (www.insurity.com).
J. Ryan Clark, Managing Director of Genstar who heads the firm’s financial services practice, characterized the firm’s investment in Insurity as successful. “This 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.”
Genstar Capital invests from $50 million to $400 million in middle-market companies that have enterprise values from $50 million to $1 billion and EBITDAs greater than $15 million. Sectors of interest include financial services, software, healthcare, and industrial technology industries. The firm was founded in 1988 and is based in San Francisco (www.gencap.com).
Insurity represents the fourth successful sale for Genstar Capital in 2014. Earlier this year the firm sold Evolution1, a provider of consumer directed health payments and technology; ConvergeOne, a provider of communications and managed services, and; TravelClick, a provider of cloud-based software solutions to the hospitality industry.
TA Associates makes buyouts and minority recapitalizations of profitable growth companies in the technology, financial services, business services, healthcare and consumer industries. Since founding in 1968, TA has invested in over 431 companies globally and has raised more than $18 billion in capital. The firm has offices in Boston, Menlo Park, London, Mumbai and Hong Kong (www.ta.com).
Spurrier Capital Partners served as financial advisor to Insurity and Ropes & Gray served as legal counsel. Goodwin Procter provided legal counsel to TA Associates.
2014 PEPD • Private Equity’s Leading News Magazine • 11-4-14
