BOTHELL — Insurance technology provider Vertafore, which is headquartered in Bothell, was purchased by two private equity firms in early July.
Bain Capital Private Equity and Vista Equity Partners acquired Vertafore from TPG Capital.
The terms of the deal weren’t disclosed, but Reuters previously reported that the deal values the insurance software provider at $2.7 billion, including debt.
Vertafore provides software for more than 500,000 insurance professionals nationwide. The company has about 1,300 total employees, around 475 of which are based in Bothell. The company was founded in Texas in 1969 and moved its headquarters to Bothell in 2005.
Vertafore’s Vice President of Marketing Guy Weismantel responded to questions through email about the deal and the future of Vertafore.
What does the acquisition mean for Vertafore?
Vertafore is operating business-as-usual.
Although we have new ownership, we are still executing on our aggressive growth goals for the second half of 2016 and we’re moving forward with our plans to help our customers.
Our customers rely on our technology and services to run their businesses, and we’re totally committed to helping them — nothing has changed there.
What will this allow the company to do in the future?
This ownership group will help us zero-in on the technology that matters for insurance professionals today, including mobile, cloud-based solutions, and data aggregation and analytics software.
They bring extensive experience in the insurance technology space to Vertafore, as well as fantastic research and resources from across their portfolio companies that we’ll be able to leverage.
Will this mean an expansion in Bothell?
We haven’t discussed what this means for Bothell or any specific site, but we have aggressive growth aspirations and are looking to hire at many of our offices, including Bothell.
What does Vertafore’s software do for insurance professionals?
Vertafore’s technology is designed to help insurance professionals prepare their businesses for digital disruption and thrive in an increasingly competitive market. We currently offer dozens software solutions, from comprehensive agency management systems to content management workflow solutions to the first customer relationship management (CRM) platform designed for the insurance industry.
We integrate our software products under a cloud-based platform that is flexible to meet the needs of any insurance professional looking to increase revenue, increase profitability, service the customer, and make more informed decisions during a time of industry disruption.
Reuters is reporting that the deal was for $2.7 billion. Why is Vertafore considered so valuable?
We’re not commenting on the acquisition price of the deal, but we do believe this is the largest investment ever in the insurance technology space.
We have seen an exponential increase in investment from venture capitalists, private equity firms, and even other technology companies in the insurance technology industry.
As consumers continue to demand updated and modern services from every industry, insurance is seen as a market with the potential for extreme growth in technology adoption.
How much revenue did the company earn last year?
As a private company, we don’t disclose our revenue numbers.
What type of market share does Vertafore hold?
We hold a majority market share in our key markets: agency management software, benefits software, rating software, content management software for carriers, and compliance and regulation solutions. Those are all strengths of the company.
What are Vertafore’s competitors?
We have a wide range of competitors given the breadth of our product line. From small start-ups to legacy providers of insurance technology, there are over 40 companies that form our competitive set.
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