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THL to snap up InsTech
Posted on Tuesday, 15 September 2020 07:02
Private equity firm Thomas H Lee Partners (THL) has signed on the dotted line to buy a majority stake in US-based Insurance Technologies (InsTech) from NexPhase Capital.

Following the deal, the target will continue to be led by its chief executive, David Fenimore, as well as other members of its senior management team.

While no financial details were disclosed, the transaction remains subject to customary conditions and regulatory approvals.

Headquartered in Colorado, InsTech provides sales and regulatory sales automation services for customers in the insurance and financial services industries.

The group caters to a range of insurance carriers and distributor firms, ranging from small independent broker dealers to large insurance marketing organisations.

InsTech’s FireLight platform provides end-to-end insurance and retirement sales services, including field underwriting, product selection, fund rebalancing programmes and account updates.

The target also offers front and back-office operations to help support multiple business strategies and encourage cross-channel growth, among other considerations.

InsTech partners with many companies worldwide, including Accenture, Microsoft Dynamics, LexisNexis and Envestnet.

Fenimore said: “We believe this partnership with THL will allow us to continue our aggressive investment in technological innovation, speed to market delivery, and building a SaaS [software-as-a-service] cloud-based product suite, enabling us to achieve our strategic plan.”

The deal will also represent another addition to the buyer’s financial services portfolio, which includes the likes of AmeriLife, HighTower Advisors and Guaranteed Rate.

According to Zephyr, the M&A database published by Bureau van Dijk, there have been 3,506 deals targeting software publishers announced globally since the beginning of 2020.

Insight Holdings Group snapped up Cyprus-based Veeam Software Holding for USD 5.00 billion, while Aveva Group also agreed to acquire OSIsoft for the same amount.

Other companies targeted in this sector so far this year include Epicor Software, Industrial & Financial Systems and Open Systems International.

© Zephus Ltd