Applied Systems, a software company that focuses on the insurance industry, said on Tuesday that it had agreed to be acquired by the private equity firm Hellman & Friedman in a deal valued at $1.8 billion.
The company is being acquired from Bain Capital, which purchased it for about $675 million in 2006.
JMI Equity, a private equity firm that focuses on software and technology services businesses, will be investing along with Hellman & Friedman, the company said in a statement. Under the terms of the agreement, members of Applied Systems’ senior management will continue to maintain a significant ownership stake, the statement said.
“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,†Reid French, the chief executive of Applied Systems, said in the statement. “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.â€
Applied Systems, which was founded in 1980 and is based in University Park, Ill., makes software for 12,000 insurance agencies and brokerages and 350 insurers in the United States, Canada and Britain.
“We believe Applied Systems is a uniquely positioned company in the global insurance software market,†David R. Tunnell, managing director of Hellman & Friedman, said in the statement. “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 premises and in the cloud.â€
The transaction is expected to be completed in early 2014.
