An acquisition that could stretch into the billions of dollars is highlighting the race to find new growth opportunities in the mature life insurance segment
By Liana B. Baker and Greg Roumeliotis
Private equity firm Vista Equity Partners has agreed to acquire Solera Holdings Inc after raising its offer to $55.85 per share in cash, valuing the insurance claims processing software maker at $6.5 billion, including debt, a person familiar with the matter said on Sunday.
The price per share is a 13-percent premium over Solera's share price on Friday, when the stock closed up 3.9 percent.
Vista expects the transaction to enhance its position as an acquirer of data companies and enterprise application software. The deal is the largest in Vista's history, the person said.
Bloomberg reported earlier on Sunday that the parties had agreed to the terms.
Investors in the deal include Broad Street Principal Investments, a Goldman Sachs Group affiliate, and an investment subsidiary of Koch Industries, the person said. Koch is to hold equity and preferred securities and the Goldman affiliate is to own preferred securities and hold debt.
On Aug. 20, Solera said it was exploring a "variety of strategic alternatives." The company hired Rothschild as its financial adviser while its board of directors' special committee hired adviser Centerview Partners LLC and the law firm Sullivan & Cromwell.
According to Solera's website, the company's clients include the 10 largest insurance companies in Europe and the United States.
Private equity firms have been active buyers of insurance services providers, attracted by their resilience in financial downturns. In August, Thoma Bravo acquired iPipeline, a provider of software to the life insurance industry. Last year, New York-based KKR & Co LP, bought Sedgwick Claims Management Services Inc for $2.4 billion from private equity peer Hellman & Friedman LLC.
Reuters 2015
Private equity firm Vista Equity Partners has agreed to acquire Solera Holdings Inc after raising its offer to $55.85 per share in cash, valuing the insurance claims processing software maker at $6.5 billion, including debt, a person familiar with the matter said on Sunday.
The price per share is a 13-percent premium over Solera's share price on Friday, when the stock closed up 3.9 percent.
Vista expects the transaction to enhance its position as an acquirer of data companies and enterprise application software. The deal is the largest in Vista's history, the person said.
Bloomberg reported earlier on Sunday that the parties had agreed to the terms.
Investors in the deal include Broad Street Principal Investments, a Goldman Sachs Group affiliate, and an investment subsidiary of Koch Industries, the person said. Koch is to hold equity and preferred securities and the Goldman affiliate is to own preferred securities and hold debt.
On Aug. 20, Solera said it was exploring a "variety of strategic alternatives." The company hired Rothschild as its financial adviser while its board of directors' special committee hired adviser Centerview Partners LLC and the law firm Sullivan & Cromwell.
According to Solera's website, the company's clients include the 10 largest insurance companies in Europe and the United States.
Private equity firms have been active buyers of insurance services providers, attracted by their resilience in financial downturns. In August, Thoma Bravo acquired iPipeline, a provider of software to the life insurance industry. Last year, New York-based KKR & Co LP, bought Sedgwick Claims Management Services Inc for $2.4 billion from private equity peer Hellman & Friedman LLC.
Reuters 2015
