Insurance Technologies Announces Acquisition by Thomas H. Lee Partners

COLORADO SPRINGS, Colo. & BOSTON--()--Insurance Technologies, LLC (“InsTech” or the “Company”), a provider of sales and regulatory automation solutions for the insurance and financial services industries, and Thomas H. Lee Partners, L.P. (“THL”), a premier private equity firm investing in growth companies, today announced that they have entered into a definitive agreement under which THL will acquire a majority stake in Insurance Technologies from NexPhase Capital, LP, an operationally-focused private equity firm and sub-advisor to the Moelis Capital Partners ("MCP") Opportunity Funds. InsTech will continue to be led by its Chief Executive Officer, David Fenimore and the other members of its senior management team.

“We are thrilled to partner with THL, whose deep insurance experience and track record of investing in growth financial technology businesses will be invaluable as we enter the next chapter of the Company’s growth,“ said Fenimore. “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 cloud-based product suite, enabling us to achieve our strategic plan.”

“David and the Insurance Technologies management team have done a tremendous job building an innovative, client-centric platform that provides a flexible set of sales and automation services and solutions and is driving the financial services sector forward. We believe this platform has tremendous potential, and we fully support David and the management team’s plan to continue investing in the development of differentiated solutions for their clients and pursuing strategic acquisitions that will further enhance their talent and technology platform,” said Ganesh Rao, Managing Director and Head of Financial Services, and Edward Shahnasarian, Principal, at THL.

Founded in 1995 and headquartered in Colorado Springs, CO, Insurance Technologies has helped transform the life insurance and annuities industry through providing powerful sales automation solutions and empowering advisors to better serve their customers. The Company’s carriers and distributors benefit from InsTech’s market leading technology, robust distribution network, and depth of experience in life insurance and annuities. The unique architecture and flexibility of its solutions deliver front and back-office configurability and usability to support multiple business strategies, encourage cross-channel growth, and evolve with regulatory changes.

Terms of the transaction were not disclosed. The transaction is subject to the completion of customary closing conditions and any regulatory approvals.

William Blair & Company is acting as exclusive financial advisor to the Company on this transaction, and Lowenstein Sandler LLP is acting as legal advisor. Kirkland & Ellis acted as legal advisor, Oliver Wyman acted as commercial advisor, and Houlihan Lokey acted as financial advisor to THL.

About Insurance Technologies

Insurance Technologies provides innovative sales and regulatory automation solutions to the insurance and financial services industry. Offering a suite of integrated sales solutions, from pre-sale functions to illustrations and e-application to post-sale services, Insurance Technologies provides carriers and distributors the sales capabilities and tools to create automated and cohesive sales experiences for their advisors and clients across all lines of insurance, retirement and investment products. The unique architecture and flexibility of its solutions deliver front and back-office configurability and usability to support multiple business strategies, encourage cross-channel growth, and evolve with regulatory changes. For more information, please visit www.insurancetechnologies.com.

About Thomas H. Lee Partners, L.P.

Thomas H. Lee Partners, L.P. ("THL") is a premier private equity firm investing in middle market growth companies, headquartered primarily in North America, exclusively in four sectors: Consumer, Financial Services, Healthcare and Technology & Business Solutions. We couple our deep sector expertise with dedicated internal operating resources to transform and build great companies of lasting value in partnership with management. Since 1974, we have raised more than $25 billion of equity capital, invested in over 150 companies and completed more than 400 add-on acquisitions representing an aggregate enterprise value at acquisition of over $200 billion. With dedicated sector and operating teams, THL brings deep domain expertise and resources to build great companies by helping to accelerate growth, improve operations and drive long-term sustainable value in partnership with management. For more information on THL, please visit THL.com.

About NexPhase Capital

NexPhase Capital, LP is a thematic and operationally-focused private equity firm that invests in lower middle market growth-oriented companies within three distinct sectors: consumer, healthcare, and software & services. The firm partners with companies that have reached a growth inflection point and are seeking a value-added partner to help navigate the company’s “next phase.” The NexPhase team has extensive industry and operational experience and NexPhase’s partners have invested together for nearly a decade. The firm has completed nearly 60 investments including add-ons and targets control equity investments between $25 million and $75 million. For more information, please visit www.NexPhase.com.

About Moelis Capital Partners

Moelis Capital Partners LLC, a subsidiary of Moelis Asset Management LP, is a middle market private equity firm founded in 2007. MCP co-manages approximately $872 million of committed private equity capital with NexPhase Capital. For more information, please visit www.moelisassetmanagement.com.

Contacts

Insurance Technologies
Kristin Wills
kwills@insurancetechnologies.com
719-442-6400

Thomas H. Lee Partners, L.P.
Sard Verbinnen & Co
Robin Weinberg/Devin Broda
212-687-8080 

NexPhase
Jonathan Keehner / Kate Thompson / Julia Sottosanti
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449

Contacts

Insurance Technologies
Kristin Wills
kwills@insurancetechnologies.com
719-442-6400

Thomas H. Lee Partners, L.P.
Sard Verbinnen & Co
Robin Weinberg/Devin Broda
212-687-8080 

NexPhase
Jonathan Keehner / Kate Thompson / Julia Sottosanti
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449