Thoma Bravo has agreed to sell iPipeline, a provider of cloud-based software to the life insurance and financial services industry, to Roper Technologies for $1.6 billion.
iPipeline’s products simplify insurance sales, compliance, operations and support by providing automated processing for pre-sales, point-of-sale execution of applications, post-sale support, reporting, consumer delivery and agency management. The company’s products are used by widely in the life insurance industry by carriers, agents (such as financial advisors and independent insurance agents), distributors (such as banks, broker-dealers and general agencies) and consumers. iPipeline was founded in 1995 and is headquartered in Exton, PA with six additional offices in the US and two in the UK (www.ipipeline.com).
Thoma Bravo acquired iPipeline in 2015. During its ownership term the firm worked with iPipeline’s management to drive organic growth in its core markets and completed five add-on acquisitions: Bluesun, a Burlington, ON-based provider of software to the life insurance and financial services industry (March 2019); TCP LifeSystems, a Bromley, UK-based provider of software to life and pensions insurance companies in the US, UK, Canada, and Ireland (January 2018); AlphaTrust, a Dallas, TX-based provider of electronic signature process automation services (March 2018); Resonant, a New York-based provider of software to the life insurance industry (January 2017); and Laser App Software, an Ontario, CA-based provider of forms automation and management software for the securities and insurance industries (September 2017).
As a result of these efforts, Thoma Bravo significantly increased the company’s equity value and today iPipeline is a market leader in cloud-based software used throughout the life insurance and annuity process from application to administration.
“We are very proud of what we have accomplished working in partnership with Tim Wallace, Larry Berran and the iPipeline management team,” said Holden Spaht, a managing partner at Thoma Bravo. “Our investment in iPipeline is another great case study for Thoma Bravo. We partnered with an outstanding management team to acquire a vertical market software leader, improved the business by leveraging Thoma Bravo’s deep operational capabilities and accelerated growth both organically and through M&A resulting in a doubling of the company’s top line and even faster earnings growth.”
Thoma Bravo specializes in investing in application, infrastructure and security software and technology-enabled services businesses. The firm’s investments typically are in the form of take-private transactions, leveraged buyouts and growth equity investments in established companies that have or can quickly reach EBITDA of greater than $50 million. Thoma Bravo has offices in Chicago and San Francisco (www.thomabravo.com).
“We are grateful to Thoma Bravo’s leadership team and the operational expertise they implemented to help invest in and grow the company,” said Tim Wallace, CEO of iPipeline. “Through our partnership with Thoma Bravo, we increased the employee headcount at iPipeline by 60%, made significant investment in our product suite and substantially improved the level of service we are able to provide to our customers. I am very proud of the culture we have built at iPipeline, and this transaction reflects the hard work and dedication of all of our employees across the globe.”
At closing of this transaction, which is expected in the third quarter of 2019, Larry Berran, the current chief financial officer and chief operating officer of iPipeline, will become chief executive officer. “iPipeline is a special company, and we could not ask for a better home for its next phase of growth than with Roper’s ownership,” said Brian Jaffee, a Principal at Thoma Bravo. “We are thrilled to see Larry transition to the CEO role and know he will continue the company’s strong momentum for many years to come.”
Roper Technologies (NYSE: ROP), the buyer of iPipeline, designs and develops software (both license and software-as-a-service) and engineered products for a variety of niche end markets. The company is headquartered in Sarasota, FL (www.ropertech.com). Roper expects iPipeline to have revenues of $200 million in 2020.
Credit Suisse is the financial advisor to iPipeline and Kirkland & Ellis and Lauletta Birnbaum are serving as legal advisors to both iPipeline and Thoma Bravo.
© 2019 Private Equity Professional | August 8, 2019
Southfield Capital has acquired Milrose Consultants, a provider of consulting services to the commercial construction industry.
“Our partnership with Southfield will enable Milrose to continue to expand our service offering and deliver on our commitment to provide world-class support to our client base on a national scale,” said Mr. Milo. “We look forward to working hand-in-hand with Southfield on this new and exciting chapter for the company that we founded over thirty years ago.”
“We could not be more enthusiastic about partnering with the Milrose team. Over the course of their 30-plus year history, owners Lou Milo, Dom Chieco, Billy Rose, Gus Mazza, and the entire management team have built a reputation as the leading building code compliance consultant in the New York market,” said Tim Lewis, a partner at Southfield Capital. “Milrose’s impressive solutions offering, client base, and industry-leading position create an exciting opportunity for us as we partner with the company for its next stage of growth.”
Southfield Capital makes control investments in companies that are active in the outsourced business services sector and have EBITDA of $4 million to $12 million. In August 2017, the firm held a final close of Southfield Capital II LP with approximately $200 million in capital commitments. The close was at the fund’s hard cap and exceeded its original target of $175 million. Southfield Capital was founded in 2005 and is headquartered in Greenwich, CT (
Pestell Group, a portfolio company of Wind Point Partners, has acquired sister companies Pro-Ag Products and Verus Animal Nutrition.
Pestell operates through two business units: Pestell Minerals and Ingredients (PMI), a distributor of animal feed minerals and ingredients for a variety of livestock; and Pestell Pet Products (PET), a full-line manufacturer of branded and private label cat litter and small animal bedding products. Both PMI and PET operate out of shared warehousing and manufacturing space near Toronto in New Hamburg, ON. Pestell also maintains 15 third-party warehouses across North America for its animal feed products business. Wind Point acquired Pestell in partnership with consumer packaged goods executive Matt Miller in June 2018 (
The acquisition of Pro-Ag and Verus is strategic to Pestell’s PMI business unit, which also distributes feed ingredients, as the combination will allow both companies to leverage their product portfolios and cross-sell to their respective customer bases. Pro-Ag and Verus also have strong feed additives portfolios which complement PMI’s existing minerals and feed ingredients product line. In addition, the acquisition expands PMI’s geographic presence further west in Canada. In June 2019, Pestell acquired VersaPet, a Toronto-based manufacturer of private label and branded cat litter products.
“Pro-Ag and Verus are very strategic acquisitions that we are thrilled to have as part of the PMI business,” said Paul Peterson, a managing director with Wind Point. “We expect these acquisitions to help us create additional avenues for growth as we focus on maximizing our geographic reach, generating cross-selling opportunities, and augmenting the existing product portfolio.”
Wind Point invests from $50 million to $100 million in companies with EBITDAs of at least $10 million. Industries of interest include business services, consumer products and industrial products. In June 2017, Wind Point held a final closing of its eighth fund, Wind Point Partners VIII LP, with $985 million of capital commitments. The fund exceeded its initial hard cap of $750 million and is the largest fund closing in Wind Point’s history. The firm was founded in 1984 and is based in Chicago (
