Hellman & Friedman is going to buy insurance software company Applied Systems from Bain Capital for $1.8 billion. JMI Equity, a private equity company focused on building software and other technology businesses will be investing in Applied Systems along with Hellman & Friedman. This transaction is expected to be completed in early 2014.
Applied Systems was founded in 1983 and they sell software to insurance agencies and brokerages. It is believed that Bain acquired Applied Systems for $675 million including debt. They will get 4.5 times their money back on the investment in the company, including dividends drawn from the company over the last few years.
“We believe Applied Systems is a uniquely positioned company in the global insurance software market,” stated David Tunnell, managing director of H&F in an interview with Reuters. “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.”