TPG Capital has signed an agreement to acquire Vertafore from Hellman & Friedman. TPG will also purchase its co-investor JMI equity for a total consideration of $1.4bn.
The acquisition is expected to close in the third quarter of 2010, subject to customary regulatory approvals.
Barclays Capital acted as financial advisor and Simpson Thacher & Bartlett LLP acted as legal counsel to Vertafore in connection with the transaction. Credit Suisse acted as financial advisor, Cleary Gottlieb Steen & Hamilton LLP served as legal counsel and Deloitte served as accounting and tax advisor to TPG in connection with the transaction. Debt financing is being provided by Credit Suisse.
Euan Menzies, president and CEO of Vertafore, said: We have enjoyed the strong support of Hellman & Friedman and JMI Equity over the past several years, and are excited to welcome our new partner, TPG.
TPG is a premier private investment firm that has an impressive track record in the technology field. The TPG team understands our business and shares our vision for the future of the company. We believe this will be an excellent partnership as we collaborate to build future successes and continue our strong customer focus.
John Marren, a partner at TPG, said: Vertafore is a world-class company that has developed essential products and services for the growing insurance industry,Vertafore has proven its ability to grow across market cycles both organically and through well-planned and successfully integrated acquisitions. We look forward to working with the company’s excellent management team and dedicated employees.