Insurance Technology M&A: 10 Key Deals
May 12, 2015 3:38 PM
"Insurance technology mergers, acquisitions, and strategic investments will not abate in the foreseeable future," Celent analyst Donald Light wrote in January. And that prediction has borne out in the deals on the following pages.
Insurity / Oceanwide
(May 12, 2015) Hartford-based commercial insurance core systems provider Insurity acquired Oceanwide, a Montreal-based vendor serving the same market. Oceanwide has been rebranded "Oceanwide, An Insurity Company." Oceanwides cloud and software-as-a-service capability was of particular interest to Insurity (click to read the story).
CCC Information Services / DriveFactor
(May 12, 2015) DriveFactor, a provider of telematics-powered usage-based insurance services for insurance and fleet clients, was acquired by CCC Information Services, which provides collision- and claims-related software to insurance companies and auto repair shops. The companies will attempt to "create the first full-service, open telematics platform for auto insurance," according to a statement announcing the buy (click to read).
Majesco / Agile Technologies
(December 15, 2014) Majesco Inc., a global provider of core systems and services to insurers, has agreed to buy Agile Technologies, an IT consulting firm with revenues of more than $9 million (click to read the story).
Patriot National / Vikaran
(April 20, 2015) Patriot National Inc., an insurance outsourcing company specializing in workers compensation, acquired Vikaran Solutions LLC, a software sales and services company serving the P&C industry, and Vikaran's software development center in Pune, India. The total purchase price for both entities was $10 million, Patriot said. Vikaran and MPCS will become part of Patriot Technology Solutions, Patriot's technology subsidiary (click to read the story).
Sapiens / IBEXI
(March 31, 2015) Sapiens International Corp., an insurance software provider, signed a definitive agreement to acquire IBEXI Solutions Private Limited, a provider of insurance business and technology solutions based in India. IBEXI's annual revenues were $4.3 million, and $3.6 million without factoring revenues generated from sales to Sapiens for the period ended December 31, 2014 (click to read the story).
Verisk Analytics / Wood Mackenzie
(March 10, 2015) Verisk Analytics Inc., a supplier of data to insurers and banks, agreed to buy Wood Mackenzie for $2.8 billion in cash, gaining a business providing information to the energy, chemicals and mining industries. Verisk Analytics will finance the purchase from Hellman & Friedman LLC and other shareholders with $2 billion of debt, the companies said. The rest will be funded with equity; the deal is expected to be completed in the second quarter, subject to regulatory approval. Verisk has a market value of $11.3 billion (click to read the story).
Renova / Octo Telematics
(February 10, 2014) Renova Group of companies acquired 100 percent of shares in Octo Telematics from Montezemolo & Partners and co-investors, Amadeus Capital Partners and Keensight Capital. Renova said the current management team will continue to manage the company, and that special focus will be given on the penetration of Octo Telematics technologies into the Russian market, where it can offer synergy in collaboration with the Russian satellite navigation system, GLONASS (click to read the story).
Cognizant / trizetto
(September 19, 2014) Cognizants $2.7 billion acquisition of insurance software vendor trizetto significantly increases its footprint in the healthcare industry, but the price is very steep considering the acquired company has about $700 million in annual revenue. Cognizant offers a suite of information technology services to companies in multiple industries including healthcare, which generates about 26 percent of revenue. Trizetto is best known for its suite of payer software products including core transactions processing and care management systems (click to read the story).
Applied Systems / nxtech
(January 8, 2015) Applied Systems Inc., a provider of software for the insurance industry, acquired nxtech Inc. to support continuing strategic investments in its IVANS Insurance Solutions business unit. Nxtech is a provider of technology solutions that enable data exchange and integration between insurance carriers and the independent agency channel in the U.S. P&C insurance industry (click to read the story).
SNL Insurance / ipartners
(January 13, 2014) SNL Insurance acquired ipartners LLC, a company offering saas-based business intelligence and reporting applications to P&C and life Insurance companies. The partnership will enable SNL Insurance to offer clients a more robust internal reporting tool and improve the way they collect, analyze and use internal data to grow operations and maximize efficiency, the company said (click to read the story).