TPG Capital to acquire Vertafore from Hellman & Friedman for $1.4 billion

Private equity firm TPG Capital yesterday said it would buy Vertafore, a provider of software and services to the insurance industry, from private equity firms Hellman & Friedman and its co-investor JMI Equity for a total of $1.4 billion.

Bothell, Washington-based Vertafore is a leading provider of software and information to the insurance distribution channel including independent agents, brokers, MGAs, carriers and reinsurers.

Founded in 1985 and formerly known as AMS Services, Vertafore offers insurance-specific solutions for managing critical business activities that includes agency management, online hosting, business analysis and reporting and real-time comparative rating.

Fort Worth, Texas-based TPG Capital is one of the world's largest private equity firm with $48 billion of capital under management.

The detailed financial terms of the transaction were not revealed by all parties.

Euan Menzies, president and CEO of Vertafore, said ''We are extremely proud of Vertafore's market leading position, innovative products and proven ability to provide value-added services to our clients. We have enjoyed the strong support of Hellman & Friedman and JMI Equity over the past several years, and are excited to welcome our new partner, TPG.''

''TPG is a premier private investment firm that has an impressive track record in the technology field. The TPG team understands our business and shares our vision for the future of the company. We believe this will be an excellent partnership as we collaborate to build future successes and continue our strong customer focus,'' he added.

''Vertafore is a world-class company that has developed essential products and services for the growing insurance industry,'' said John Marren, a partner at TPG. ''Vertafore has proven its ability to grow across market cycles both organically and through well-planned and successfully integrated acquisitions.''