Applied Systems to be Acquired by Management and Bain Capital
Insurance Technology Company Purchased from Vista Equity Partners;
Strong Growth Potential in Under Penetrated Markets;
Current Management to Stay, Grow the Business
University Park, IL, August 11, 2006 - Applied Systems, Inc., a leading provider of agency management technology for the property and casualty insurance industry, today announced it has signed a definitive agreement for a management-led buyout by its CEO and Bain Capital Partners (“Bain Capital”), a global private investment firm. Terms of the agreement to purchase the business from Vista Equity Partners, LLC (“Vista”) were not disclosed.
Bain Capital is acquiring Applied Systems with an eye on promising growth prospects for the company, which is acknowledged as the international leader in providing technology and services to the independent agent and broker marketplace. Applied Systems has achieved international reach with its core products, The Agency Manager (TAM)®, The Agency Manager® Vision Series™, and DORIS.
Applied Systems has also earned consistent industry recognition for innovative leadership in developing real-time technology and promoting interface standards adoption. The company is distinguished from competitors by near-complete reliance on a skilled in-house development staff to design, test, and update its technology.
“We are fiercely proud of the success Applied Systems has achieved over the past 26 years,” said James P. Kellner, who continues as Applied Systems Chairman, CEO, and a significant investor in the company. “Vista was an excellent partner. Their support enabled us to successfully position the company for its next phase of growth. With Bain Capital’s partnership, we are excited to continue our course of innovative product development and customer base expansion.”
“Applied Systems has created a market-leading position by successfully automating and enhancing the workflow process and delivery platforms of insurance agencies of all sizes,” said Andrew Balson, a Managing Director at Bain Capital. “We are excited to support Jim Kellner and his management team as they continue to grow the business and invest in superior technology and customer service.”
Credit Suisse Securities and JPMorgan provided advisory services to Bain Capital with respect to the transaction and will also be providing financing. Applied Systems was advised by William Blair & Company.
About Applied Systems
Applied Systems (www.appliedsystems.com) designs, sells, and supports technology solutions for independent insurance agents, brokers, managing general agents, and insurance companies, as well as banks and other financial institutions with insurance operations. More than 120,000 users in 10,000 agencies—many of them multi-office conglomerates—use Applied Systems technology and services. The company leads the industry in agency/carrier real-time and batch communication solutions. Applied Systems automates insurance transactions at every distribution level from consumer through carrier, providing technical support and professional services to maximize customers’ return on investment.
About Bain Capital
Bain Capital (www.baincapital.com) is a global private investment firm that manages several pools of capital including private equity, venture capital, public equity, and leveraged debt assets with more then $38 billion in assets under management. Since its inception in 1984, Bain Capital has made private equity investments and add-on acquisitions in over 230 companies around the world, including such business services and technology companies as SunGard Data Systems, UGS, FleetCor, TeamSystem, USinternetworking, Gartner Group and Therma-Wave. Headquartered in Boston, Bain Capital has offices in New York, London, Munich, Hong Kong, Shanghai, and Tokyo.
