Bothell, Wash.-based Vertafore, which already counts AMS Services, SilverPlume and ImageRight among its operating entities, announced today that it has entered into an agreement to acquire Sircon Corporation.
The Okemos, Mich.-based Sircon will operate as a wholly-owned Vertafore subsidiary. The company offers a suite of online services that allow carriers to manage compliance and producer information, and accelerate the agent licensing and appointment processes.
A Vertafore source says that Sircon will help the company address customers' growing needs regarding producer management. For example, Vertafore says it plans to add Sircon's Compliance Express solution to the AMS 360 producer center, to allow users of the agency management system to more efficiently apply and renew licenses, track continuing education requirements and manage other licensing and contracting tasks.
The deal is another example of how vendors are expanding their footprint by filling gaps with complementary solutions that offer their customers a more end-to-end solution, says Gartner analyst Kimberly Harris-Ferrante. "This aquisition will help Vertafore in its mission to offer solutions to the insurance [carrier] and agency marketplace, but integration must be done in order for customers to achieve real benefits," she adds.
"This acquisition strengthens Vertafore's position in the distribution end of the insurance technology market, expanding their presence beyond the P&C independent agent channel into life/annuity and captives as well," comments Matt Josefowicz, director of Novarica's insurance practice.
The Sircon brand name will not change and there are no plans to move or reduce the organization's 120 employees. The acquisition is expected to close on July 30, subject to customary closing condition.