Chesco tech firm to be sold for $1.62B
IPipeline will continue to operate from Exton HQ
“Roper provides iPipeline with a long-term foundation to further develop the life insurance and financial services industry’s leading platform and execute on our core purpose of helping our customers secure the financial futures of families.” — Larry Berren, CEO, iPipeline
EXTON >> iPipeline, a Chester County-based company that provides cloud-based software solutions for the life insurance and financial services industry, will be acquired by Roper Technologies Inc. in an all-cash transaction valued at $1.62 billion.
The acquisition is expected to close in the third quarter, subject to regulatory approval and customary closing conditions.
Roper Technologies president and CEO Neil Hunn called iPipeline a “high-quality company” in Roper’s announcement Monday that it had reached a definitive agreement with Thoma Bravo LLC, the private equity investment firm that acquired iPipeline in 2015.
“iPipeline is a terrific company with clear niche market leadership, a history of strong organic growth, high customer retention, and a management team that will thrive as part of Roper. We look forward to supporting iPipeline as they execute on numerous future growth opportunities while expanding the benefits enjoyed by their large and growing network of carriers, distributors, and agents,” Hunn said in a statement.
Simultaneous with the acquisition announcement, iPipeline announced that Larry Berran would assume the CEO position at iPipeline. Berran joined iPipeline in 2002, serving as CEO until 2008, when he was succeeded by Tim Wallace. Berran has served as chief operating officer and chief financial officer since 2008.
“Roper’s acquisition of iPipeline is a great opportunity for our customers, employees, and partners,” Berran said in a press release. “Roper provides iPipeline with a long-term foundation to further develop the life insurance and financial services industry’s leading platform and execute on our core purpose of helping our customers secure the financial futures of families.” He added that
iPipeline is committed to providing leading digital technologies to expand the market.
“Roper’s commitment to sustained investment in our business model, products, services, and employees means we will continue to deliver these solutions and domain expertise that have driven significant value for our customers for 25 years,” he said in the release.
As part of the transition, Wallace — who has been iPipeline’s CEO since 2008 — announced his move into a strategic advisor role.
iPipeline’s management team will continue to manage the business from its Exton headquarters. iPipeline’s name and brands are not expected to change as a result of the transaction.
Since acquiring iPipeline in 2015, Thoma Bravo has worked with the company to drive growth in its core markets, according to the company.
Wallace said that through its partnership with Thoma Bravo, iPipeline increased the number of employees by 60%, invested in its product suite and “substantially improved the level of service we are able to provide to our customers.”
Roper anticipates funding the transaction using its revolving credit facility and cash on hand. iPipeline is expected to contribute approximately $200 million of revenue and $70 million of after-tax free cash flow in 2020, excluding the impact of fair value accounting for deferred revenue and financing costs, according to the release.
Credit Suisse is serving as the financial advisor to iPipeline and Kirkland & Ellis LLP and Lauletta Birnbaum LLP are serving as legal advisor to iPipeline and Thoma Bravo.
Roper Technologies operates businesses that design and develop software (both license and software-as-aservice) and engineered products and solutions for a variety of niche end markets. For more information visit www.ropertech.com
Through its SSG Digital, end-to-end platform, iPipeline accelerates and simplifies sales, compliance, operations and support, providing process automation and seamless integration. iPipeline’s platform is used by approximately 150 insurance carriers, 1,350 distributors and financial institutions and their agents and licensed advisors. In addition to Exton, the company has locations in Dallas, Texas; Fort Lauderdale, Fla.; Huntersville, N.C.; Ontario, Calif.; Philadelphia; Pleasanton, Calif.; Bromley, United Kingdom; Burlington, Canada; and Cheltenham, United Kingdom.
For more information visit www.ipipeline.com.
“iPipeline is a terrific company with clear niche market leadership, a history of strong organic growth, high customer retention, and a management team that will thrive as part of Roper. We look forward to supporting iPipeline as they execute on numerous future growth opportunities while expanding the benefits enjoyed by their large and growing network of carriers, distributors, and agents.” — Neil Hunn, president and CEO, Roper Technologies Inc.