Applied Systems, a cloud-based software provider for insurance businesses, has secured minority investment from Alphabet’s investment fund CapitalG.
Applied Systems stated that this minority stake can bring access to Google expertise in artificial intelligence, machine learning and digital marketing.
In the past five years, Applied Systems is claimed to have doubled in size and revenue by growing its product portfolio and customer base across the US, Canada, the UK and Ireland. It continues to provide services to the insurance businesses through innovative product portfolio, services and customer support.
CapitalG partner Gene Frantz said: “Applied Systems is a pioneer in the insurance industry, transforming the way insurers, agents and customers do business in the cloud. We are excited to partner with Applied in support of its rapid growth and best-in-class technology.
“We look forward to bringing some of the world’s leading experts at Google and Alphabet to drive innovation within the global insurance ecosystem.”
Applied Systems CEO Reid French said: “We are pleased to have CapitalG join Applied’s investor base given their deep software experience.
“We also welcome the technical expertise and resources that CapitalG brings through its connection with Google and look forward to their partnership as we continue to deliver innovation to the insurance industry in support of our growing customer base.”
Under the stake acquisition agreement, Hellman & Friedman affiliates will retain majority of interest in Applied and CapitalG will join the company along with JMI Equity and Stone Point Capital as a minority investor.
Hellman & Friedman partner Sameer Narang said: “CapitalG’s investment is a testament to Applied’s track record of innovation and its outlook for continued product leadership. CapitalG uniquely positions Applied to take advantage of tremendous growth opportunities by further accelerating several product initiatives for the benefit of Applied’s customers and the insurance industry.”
The investment is expected to support the company to continue its focus on digital innovation in global insurance industry.
The transaction, whose details have not been disclosed, is expected to be closed in the third quarter of this year.