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Vertafore to be Acquired by TPG Capital

Pending regulatory approval, TPG will purchase Vertafore from Hellman & Friedman and its co-investor JMI Equity for $1.4 billion by the third quarter of 2010.

Bothell, Wash.-based Vertafore — an insurance software and services provider with principal operating entities such as Sircon, Phoenix, AMS Services and ImageRight — has reached a definitive agreement to be acquired by TPG Capital (Fort Worth, Texas). TPG will purchase Vertafore from Hellman & Friedman and its co-investor JMI Equity for $1.4 billion. The acquisition is expected to close in the third quarter of 2010, according to a Vertafore news release.

"We are extremely proud of Vertafore's market leading position, innovative products and proven ability to provide value-added services to our clients," comments Euan Menzies, president and CEO, Vertafore. "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," Menzies adds. "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."

John Marren, a partner at TPG describes Vertafore as a world-class company that has developed essential products and services for the growing insurance industry. "Vertafore has proven its ability to grow across market cycles both organically and through well-planned and successfully integrated acquisitions," Marren says. "We look forward to working with the company's excellent management team and dedicated employees."

Barclays Capital acted as financial advisor and Simpson Thacher & Bartlett LLP acted as legal counsel to Vertafore in connection with the transaction. Credit Suisse acted as financial advisor, Cleary Gottlieb Steen & Hamilton LLP served as legal counsel and Deloitte served as accounting and tax advisor to TPG in connection with the transaction. Debt financing is being provided by Credit Suisse, according to the Vertafore release.

Anthony O'Donnell has covered technology in the insurance industry since 2000, when he joined the editorial staff of Insurance & Technology. As an editor and reporter for I&T and the InformationWeek Financial Services of TechWeb he has written on all areas of information ... View Full Bio

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