The deal is expected to close in the third quarter of 2020
Vertafore, one of the leading agency management solutions used by independent insurance agencies for over 50 years, has been acquired. In an all-cash deal valued at approximately $3.5 billion, Sarasota-based Roper Technologies will acquire the cloud-based insurance technology company used by more than 20,000 agencies and 1,000 insurance carriers nationally.
“Vertafore is a fantastic business characterized by clear leadership in its niche market, a strong management team, high customer retention, and a long track record of consistent revenue and cash flow growth,” said Neil Hunn, Roper’s President, and CEO. “The acquisition of Vertafore is a great example of our disciplined capital deployment strategy which focuses on durable, long-term cash flow compounding. We look forward to welcoming Vertafore to the Roper family.”
“Roper’s businesses consistently have clear niche market leadership, strong management teams, high customer retention and a track record of consistent growth. Vertafore meets all of our criteria and we are thrilled for them to join the Roper family,” continued Mr. Hunn. “We’re especially impressed by Amy and her team, their commitment to customer success, and their long-term focus to drive innovation across the insurance industry. The demand from their customers to simplify complex and outdated processes creates multiple drivers for long-term growth, and we are excited to invest in that innovation.”
According to the terms of the transaction, the Vertafore brand name, additional brands, and office locations as well as its Denver headquarters will not change due to the sale of the company. The Vertafore management team, led by current CEO Amy Zupon, also will continue in their roles with the company.
“In Roper we have found a partner who shares both our vision and our values,” said Vertafore Chief Executive Officer Amy Zupon. “Their acquisition of Vertafore is validation of our strategy to provide innovative and critical solutions to our customers. Roper’s long-term mindset and proven model in selecting niche market leaders offers Vertafore a platform from which we can accelerate our commitment to helping our customers further modernize their operations. We are excited to have found a permanent home for our great company.”
Since 2016, Vertafore has added more than 500 employees and says that it has improved its customer net promoter score by 200%, in addition to increasing its annual recurring sales and investment in its products. All of these initiatives have been done in support of the company mission to automate and simplify insurance distribution to drive value for their customers. Roper is acquiring Vertafore from Bain Capital Private Equity and Vista Equity Partners. The deal, which is subject to regulatory approval and customary closing conditions is expected to close in the third quarter of 2020.
