Applied Systems Inc., an insurance software provider has signed a definitive agreement to be acquired by investment funds advised by Hellman & Friedman LLC and JMI Equity, a private equity firm. The transaction is valued at $1.8 billion. Applied Systems is being sold by Bain Capital, a private investment firm.
"We believe Applied Systems is a uniquely positioned company in the global insurance software market," said 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."
Applied Systems’ senior management will continue to maintain a significant ownership position in the company. H&F said it has current and previous experience in the software and insurance industries through owning large scale agencies, insurance carriers and software providers. The company is now investing its seventh fund, which has more than $8.9 billion of committed capital.
"All of us at Applied are pleased to be partnering with H&F and JMI Equity as they share our commitment to revolutionize the global business of insurance by investing behind the company’s unique product vision for the benefit of our customers," said Reid French, CEO 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."
Applied has a customer base of more than 12,000 agencies and brokerages and 350 insurers in the United States, Canada and the United Kingdom, the company said.
"We are enthusiastic to support Reid and the Applied Systems employees as they extend their impressive track record of growth for years to come with mission critical products and services which are at the heart of the insurance agency and carrier businesses," said Anupam Mishra, managing director of Hellman & Friedman.
The transaction is subject to customary conditions to closing and is expected to be completed in early 2014, the company said.
