Genstar Exits IAS Platform

Genstar has closed the sale of Innovative Aftermarket Systems, a provider of automotive finance and insurance products, to publicly traded iA Financial Group.

Innovative Aftermarket Systems (IAS) provides automotive warranties, vehicle services contracts, training, and other related software and services. The company is headquartered in Austin, Texas with additional offices in Oklahoma City, Oklahoma and Dublin, Ohio.

The company, founded in 1984 and led by CEO Patrick Brown, has more than 500 employees and its products are sold to more than 4,300 automotive dealers through hundreds of certified agents located throughout the United States.

“The benefits of our partnership with Genstar can be seen through a variety of growth metrics, including increases in our coverage volume, premiums written, elevated customer service and most importantly empowering more vehicle owners with peace of mind during their ownership period,” said Mr. Brown. “We’re grateful to the Genstar team for their support and excited for the growth opportunities that lie ahead as we join the iA family.”

Quebec-headquartered iA Financial Group (Industrial Alliance Insurance and Financial Services) (TSX: IAG) is a provider of life and health insurance products, savings and retirement plans, mutual and segregated funds, securities, auto and home insurance, mortgages, car loans and other financial products and services. The company was founded in 1892 and has more than C$169 billion in assets under management.

“IAS has been an incredibly successful long-term investment for us since our acquisition in 2011, and we are pleased with the evolution of IAS into one of the leading automotive warranty platform businesses,” said Ryan Clark, president and managing director of Genstar. “During our ownership term, the leaders of IAS – first Bob Corbin and then Patrick Brown – delivered organic growth, strategic acquisitions, additional product lines, and best-in-class technology solutions.  We want to thank Patrick, Bob and the entire IAS team for their efforts that led to this successful outcome.”

San Francisco-based Genstar 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. The firm targets investments in the financial services, software, industrial technology, and healthcare industries. In February 2019, Genstar held a final closing of Genstar Capital Partners IX LP with $5.9 billion in capital commitments.

Private Equity Professional | May 29, 2020

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