A quiet giant in Seattle’s software industry, Bothell insurance software provider Vertafore, announced today that it was sold for $1.4 billion to investment funds managed by TPG Capital.
TPG is acquiring the company from Hellman & Friedman and JMI Equity, private equity firms that bought the company in 2004.
It’s quite a show of faith in Seattle for Fort Worth-based TPG. The buyout firm lost almost the same amount of money here – $1.3 billion – two years ago when Washington Mutual collapsed.
Vertafore Chief Executive Euan Menzies said in the release that “We believe this will be an excellent partnership as we collaborate to build future successes and continue our strong customer focus.”
Vertafore provides software and services to insurance agents, brokers, carriers nad reinsurers. It claims more than 17,000 customers and 500,000 users. It started in 1969 and combined with a former Safeco unit in 1996.
The company employs 1,140 people. Asked if any layoffs will result from the change, spokeswoman Linda Caudle said “There’s no plans for that at all.”
“We do not expect any change in the strategy, direction or management as a result of this change,” she said.
(Update: It turns out there were some layoffs, the day before the sale. The company said they were unrelated to the deal.)