Thoma Bravo to Sell iPipeline

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

Print Friendly, PDF & Email

Related Articles

SK Capital Buys PolyOne Business SK Capital has agreed to acquire the performance products and solutions business (PPB) of PolyOne Corporation for approximately $775 million. PPB i...
Centerbridge Invests in GoHealth Centerbridge Partners has acquired GoHealth, a provider of direct-to-consumer sales, marketing and customer service products used by health insurance ...
Mill Point Closes Transformers Carve-Out Mill Point Capital has completed the carve-out of the power transformers division of publicly traded Pioneer Power Solutions for $60.5 million in cash...
Audax Carves EIS from Genuine Parts Audax Private Equity has agreed to acquire EIS, the electrical specialties group of Motion Industries, from publicly traded Genuine Parts Company. ...
Chemtron Switches Sponsors Kinderhook Industries has acquired Chemtron Corporation from CapitalWorks which acquired the company in November 2015. Chemtron is a provider of ha...
Warren’s SIMCO Acquires Carolina Coatings Superior Industrial Maintenance Company (SIMCO), a portfolio company of Warren Equity since May 2018, has acquired Carolina Coatings Solutions and Ind...