Exclusive-Hellman & Friedman explores sale of Applied Systems at up to $10 billion, sources say
A U.S. $100 dollar bill is seen December 17, 2009. REUTERS/Sam Mircovich
Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
NEW YORK, Sept 23 : Private equity firm Hellman & Friedman is exploring a sale of insurance software provider Applied Systems that could value the company at up to $10 billion, according to people familiar with the matter.
The private equity firm is working with investment bankers at JPMorgan and Goldman Sachs on the process, which has attracted interest from prospective buyers, said the sources, who requested anonymity because the matter is confidential.
Applied Systems, Hellman & Friedman, JPMorgan and Goldman Sachs declined to comment.
Headquartered in Chicago, Applied Systems provides software that helps insurance agencies and brokerages manage customer relationships, policy administration, and other workflows. Its customers include insurance brokerages such as HUB International, Insurance Office of America, and the Baldwin Group, according to its website.
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
Applied Systems generates more than $550 million in annual earnings before interest, taxes, depreciation and amortization, one of the sources said.
Hellman & Friedman bought Applied Systems from Bain Capital in a deal valued at approximately $1.8 billion in early 2014.
A sale would rank among the largest software buyout processes this year and test investor appetite for mature software assets, following ServiceNow’s $7.7 billion acquisition of cybersecurity provider Armis and buyout firm Hg’s $6.4 billion take-private of financial software provider OneStream.
Sell-side activity in the software sector has picked up in recent weeks after being relatively muted over the past months, with more companies launching sale processes.
This month, Reuters reported that Thoma Bravo was exploring a sale of Foundation Software, Vista Equity Partners was considering a sale of banking software provider Finastra, and healthcare software company Waystar was weighing strategic options, including a sale, as sponsors seek to capitalize on improving valuations.
Source: Reuters
Sign up for our newsletters
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
