Hellman & Friedman, a private equity investment firm has reached an agreement to acquire insurance software provider Applied Systems, from Bain Capital, in a transaction valued at nearly $1.8bn.

Other parties who will also invest the significant capital in the acquisition include JMI Equity, a growth-oriented private equity firm, while Applied Systems’ senior management members will continue to maintain a significant ownership position in the company.

Serving over 12,000 agencies and brokerages and 350 insurers in the US, Canada and the UK, Applied Systems operates an agency management systems and data exchange between agencies, brokerages, carriers and their clients.

Applied Systems CEO Reid French said, "This acquisition represents an endorsement of Applied Systems’ talented employee base, strategic plan and product vision that have made the growth of our company possible."

Hellman & Friedman managing director David Tunnell commented, "It combines the largest user base in the industry with Applied Epic, the fastest growing new agency management system, to be the market leader in insurance technology for deployments both on premise and in the cloud."

Subject to customary conditions, the transaction is likely to conclude in early 2014.

Set up in 1984, Hellman & Friedman focuses on investing in superior business franchises and serving as a value-added partner to management in select industries including financial services, insurance, software, business & marketing services, among others.