Applied Systems Announces Minority Investment by Stone Point Capital
11 September 2017
Applied focused on continued growth and innovation for the insurance ecosystem
University Park, IL – 11 September 2017 – Applied Systems (“Applied”), the leading global provider of cloud-based software that powers the business of insurance, today announced that it has entered into an agreement with funds managed by Stone Point Capital LLC (“Stone Point”), a private equity firm focused on investing in the global financial services industry.
Under the agreement, affiliates of Hellman & Friedman will retain majority ownership of the Company, with Stone Point joining JMI Equity as a minority investor. The investment will support Applied as it continues to focus on helping its customers drive enhanced efficiency and grow their own businesses more quickly with cloud-based solutions.
Over the past five years, Applied has more than doubled its revenue and significantly grown its customer base throughout the United States, Canada, the United Kingdom and the Republic of Ireland. As the insurance industry’s trusted technology partner for more than 30 years, Applied continues to serve its customer base through an innovative product portfolio, industry leading service & support, and an expanding global footprint.
"We are pleased to have Stone Point join Applied’s investor base,” said Reid French, chief executive officer, Applied Systems. “We welcome their deep domain expertise within the insurance vertical and look forward to their partnership as we continue to invest behind our product vision in support of our customers."
Chuck Davis, CEO of Stone Point, said, "We are delighted to be partnering with Reid and the team at Applied, and to work with Hellman & Friedman once again. Building on our experience in the insurance software industry, we look forward to working with Applied as it continues to provide mission-critical software applications to independent agents and insurance carriers."
Sameer Narang, Director at Hellman & Friedman, said, "We are thrilled to welcome Stone Point as our partner as we enter the next chapter of Applied’s success. Tremendous growth runway lies ahead, and we are committed to supporting Reid and his management team in their continued mission to accelerate product innovation and deliver market-leading cloud-based solutions to Applied’s growing customer base."
The transaction is expected to close in the fourth quarter of 2017. Terms were not disclosed.
Evercore and Jefferies acted as financial advisors to Applied Systems on the transaction. Simpson Thacher Bartlett LLP served as legal counsel for Applied and Hellman & Friedman. Kramer Levin Naftalis & Frankel LLP served as legal counsel for Stone Point.
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About Applied Systems
Applied Systems is the leading global provider of cloud-based software that powers the business of insurance. Recognized as a pioneer in insurance automation and the innovation leader, Applied is the world’s largest provider of agency and brokerage management systems, serving customers throughout the United States, Canada, the Republic of Ireland, and the United Kingdom. By automating the insurance lifecycle, Applied’s people and products enable millions of people around the world to safeguard and protect what matters most.
About Stone Point Capital LLC
Stone Point Capital LLC is a financial services-focused private equity firm based in Greenwich, CT. The firm has raised and managed seven private equity funds – the Trident Funds – with aggregate committed capital of approximately $19 billion. Stone Point targets investments in the global financial services industry, including investments in companies that provide outsourced services to financial institutions, banks and depository institutions, asset management firms, insurance and reinsurance companies, insurance distribution and other insurance-related businesses, specialty lending and other credit opportunities, mortgage services companies and employee benefits and healthcare companies. For further information about Stone Point, see www.stonepoint.com.
About Hellman & Friedman
Hellman & Friedman is a leading private equity investment firm with offices in San Francisco, New York, and London. Since its founding in 1984, H&F has raised over $35 billion of committed capital. The firm focuses on investing in superior business franchises and serving as a value-added partner to management in select industries including business & information services, software, retail & consumer, internet & media, financial services, healthcare, and industrials and energy. For more information on Hellman & Friedman, please visit www.hf.com.
About JMI Equity
JMI Equity is a growth equity firm focused on investing in leading software companies. Founded in 1992, JMI has invested in over 130 businesses in its target markets, successfully completed over 85 exits, and raised more than $3.0 billion of committed capital. JMI partners with exceptional management teams to help build their companies into industry leaders. For more information, visit www.jmi.com.