Vertafore, a provider of cloud-based insurance technology services and a portfolio company of TPG Capital, has signed an agreement to be acquired by Bain Capital Private Equity and Vista Equity Partners for a reported $2.7 billion. Vertafore was acquired by Hellman & Friedman and JMI Equity in 2004 and then sold to TPG Capital for $1.4 billion in 2010.
Vertafore is a provider of cloud computing services to that are used to digitally connect every point of the insurance distribution channel, from agencies and carriers to managing general agents, managing general underwriters, and state governments. The company, with estimated annual revenues of $400 million, has approximately 25,000 customers and is used by 500,000 insurance professionals. Vertafore has been led by Jeff Hawn, Chairman & CEO, since April 2015. The company employs 1,500 people in 11 offices across the country and is headquartered north of Seattle in Bothell, WA (www.vertafore.com).
The sale to Bain and Vista comes just a month after Vertafore acquired Keal Technology, a Toronto-based provider of IT services to insurance brokers (www.keal.com) and less than a year after the purchase of QQSolutions (www.qqsolutions.com), a Boca Raton-based provider of IT services to independent insurance agencies and brokers.
“Vertafore is a market leader with mission critical product offerings for insurance brokers and a compelling business model,” said Ian Loring, a Managing Director at Bain Capital Private Equity. “The company has been at the forefront of product innovation and bundling solutions to help make agency management more efficient.”
“Vista is enthusiastic about Vertafore’s software and information solutions, employees, and the vast customer base they serve today,” said Brian Sheth, Co-Founder and President of Vista. “We’re eager to work with the team to continue to develop best-in-class products and services for the insurance industry, grow the business, and expand market share.”
Vista Equity Partners has more than $14 billion in committed capital and makes equity investments in software, data and technology-enabled companies. The firm was founded in 2000 and has over 50 investment professionals operating out of San Francisco, Chicago and Austin (www.vistaequitypartners.com).
Bain Capital Private Equity was founded in 1984 and invests in the consumer and retail; financial and business services; healthcare; industrials; and technology, media and telecommunications sectors. The firm has offices in New York and Boston (www.baincapitalprivateequity.com).
“We are thrilled to be working with two great private investors like Bain and Vista to fuel the future growth of Vertafore,” said Mr. Hawn. “We are also thankful for the leadership and support from TPG over the past six years and appreciate all they’ve done to prepare us for the next phase of our company’s growth.”
TPG was founded in 1992 and makes investments throughout North America, Europe, Asia and Australia. Sectors of interest include industrials, retail, consumer, financial services, travel and entertainment, technology, media and communications, and healthcare. The firm has offices in San Francisco, Fort Worth, Austin, Dallas, Houston, New York, Beijing, Hong Kong, London, Luxembourg, Melbourne, Moscow, Mumbai, São Paulo, Shanghai, Singapore and Tokyo (www.tpg.com).
Credit Suisse (www.credit-suisse.com) is providing financing commitments to support the transaction and is also acting as financial advisor to Bain and Vista. BofA Merrill Lynch (www.baml.com) is the financial advisor to Vertafore and Ropes & Gray is the legal advisor. Kirkland & Ellis (www.kirkland.com) is acting as legal counsel and E&Y (www.ey.com) is serving as accounting advisor to Bain and Vista.
The sale of Vertafore is expected to close before the end of the third quarter.
© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 5-4-16
