Concentrix sells insurance third-party administration operation and software platform
Concentrix Corporation, a global provider of customer experience (CX) solutions and technology, has reached a definitive agreement to sell its insurance third-party administration operations and software platform (CIS) to Abry Partners, a Boston-based private equity firm, and Hoplon Capital, an asset manager focused on digital disruption of end markets including insurance.
This will create a new company which will operate as a standalone business bringing innovation to the insurance marketplace. The transaction is expected to close by the end of May 2021 subject to the approval of customary regulatory requirements and closing conditions. The sale does not impact Concentrix’ financial guidance for fiscal year 2021, which remains unchanged.
CIS has undergone a major business transformation over the past few years, successfully generating revenue and profit growth. This transaction provides an opportunity for further focus and expansion, positioning the business to develop as an independent platform with the potential to transform the insurance industry. The proceeds from the sale will enable Concentrix to further invest and strengthen its position as a leader in the CX industry.
“We continue to be focused on driving exceptional CX and Technology solutions that provide higher value outcomes for our clients and their customers,” says Chris Caldwell, President and CEO of Concentrix. “This sale will allow us to invest further resources and energy in the growth of our core end-to-end CX capabilities.”
Brent Stone, Partner at Abry Partners, says: “This new investment falls directly within our strategy of partnering with high caliber management teams in the insurance services sector and we are thrilled to support this corporate carveout as we begin the process of positioning CIS as an independent company. We share management’s vision to continue the company’s growth both organically and through strategic acquisitions and look forward to our new partnership. We expect to announce additional details when we complete the transaction later this month.”
Abry is partnering with Hoplon Capital in the transaction.
Robert Arsov, Partner at Hoplon Capital, says: “We are excited to join forces with Abry in this new partnership with the CIS business to help lead its next phase of growth as an independent company. We are investing in a strong technology business and see significant potential to leverage its digital platform and drive further market expansion. We are confident that this transaction will position both businesses to lead and innovate in their respective industries.”