Applied Systems, a provider of software that powers the business of insurance, is to be acquired by investment funds advised by Hellman & Friedman.
The company is being acquired from the global private investment firm Bain Capital in a transaction valued at approximately USD1.8bn.
JMI Equity, a growth-oriented private equity firm that focuses on building software and technology-enabled services businesses, will be investing alongside H&F and, under the terms of the agreement, members of Applied Systems’ senior management will continue to maintain a significant ownership position in the company.
Applied Systems is a provider of insurance software and agency management systems and data exchange between agencies, brokerages, carriers and their clients. The company supports a customer base of over 12,000 agencies and brokerages and 350 insurers across the US, Canada and the UK.
Hellman & Friedman is a private equity investment firm with offices in San Francisco, New York and London and is currently investing its seventh fund, which has over USD8.9bn of committed capital. H
“All of us at Applied are pleased to be partnering with H&F and JMI Equity as they share our commitment to revolutionise the global business of insurance by investing behind the company’s unique product vision for the benefit of our customers,” says Reid French, chief executive of Applied Systems. “This is an exciting time in the 30-year history of Applied Systems. Our senior management team and I are extremely appreciative of Bain Capital’s unwavering support in executing our growth mission over these past seven years. This acquisition represents an endorsement of Applied Systems’ talented employee base, strategic plan and product vision that have made the growth of our company possible.”
“We believe Applied Systems is a uniquely positioned company in the global insurance software market,” says David Tunnell, managing director of Hellman & Friedman. “It combines the largest user base in the industry with Applied Epic, the fastest growing new agency management system, to be the market leader in insurance technology for deployments both on premise and in the cloud.”
“We have enjoyed a very productive partnership with Applied Systems, working closely with the management team to expand market share and significantly enhance the product suite,” says Andrew Balson, managing director at Bain Capital. “We wish Reid and the new ownership group great success as they continue to build the business.”
The transaction is subject to customary conditions to closing and is expected to be completed in early 2014.
