M&A Deal Summary

CapitalG, Hellman & Friedman, JMI Equity and Stone Point Capital Acquire Applied Systems

On January 24, 2014, corporate investor CapitalG, private equity firm Hellman & Friedman, private equity firm JMI Equity and private equity firm Stone Point Capital acquired internet software and services company Applied Systems from Bain Capital Private Equity and The Carlyle Group for 1.8B USD

Acquisition Highlights
  • This is CapitalG’s 7th, Hellman & Friedman’s 6th, JMI Equity’s 15th and Stone Point Capital’s 3rd transaction in the Internet Software and Services sector.
  • This is CapitalG’s , Hellman & Friedman’s 20th, JMI Equity’s 3rd and Stone Point Capital’s 6th largest (disclosed) transaction.
  • This is CapitalG’s 9th, Hellman & Friedman’s 40th, JMI Equity’s 65th and Stone Point Capital’s 49th transaction in the United States.
  • This is CapitalG’s 1st, Hellman & Friedman’s 4th, JMI Equity’s 4th and Stone Point Capital’s 3rd transaction in Illinois.

M&A Deal Summary

Date 2014-01-24
Target Applied Systems
Sector Internet Software and Services
Buyer(s) CapitalG
Hellman & Friedman
JMI Equity
Stone Point Capital
Sellers(s) Bain Capital Private Equity
The Carlyle Group
Deal Type Secondary Buyout
Deal Value 1.8B USD
Advisor(s) Ropes & Gray
Simpson Thacher & Bartlett (Legal)

Target

Applied Systems

University Park, Illinois, United States
website
Applied Systems is a provider of cloud-based software that powers the business of insurance. The Company develops software for independent insurance agents, brokers, managing general agents, and insurance companies, as well as banks and other financial institutions with insurance operations. Applied Systems was founded in 1983 and is based in University Park, Illinois.

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Buyer(S) 4

Buyer

CapitalG

San Francisco, California, United States

Investor Investor Investor Investor Investor

website


Category Corporate Investor
Founded 2013
PE ASSETS 3.0B USD
Size Large
Type Sector Focused
DESCRIPTION

CapitalG is the growth equity and direct investment arm of Alphabet, Inc. CapitalG invests in emerging tech-enabled service companies and assists with providing tactical advice across key functional areas such as engineering, product, sales, and marketing. CapitalG was formerly known as Google Capital. The Unit was formed in 2013 and is based in San Francisco, California.


DEAL STATS #
Overall 10 of 36
Sector (Internet Software and Services) 7 of 18
Type (Secondary Buyout) 1 of 3
State (Illinois) 1 of 1
Country (United States) 9 of 31
Year (2014) 2 of 5
Size (of disclosed) 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-01-01 Gusto

San Francisco, California, United States

Gusto is on a mission to build a world where work empowers a better life. Gusto reimagines payroll, benefits, HR, and personal finance by streamlining and simplifying the most complicated, impersonal business tasks and making them delightful. Gusto was founded in 2012 and is based in San Francisco, California.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-02-18 Duolingo

Pittsburgh, Pennsylvania, United States

Duolingo is a language-learning platform and the most downloaded education app worldwide. Duolingo's mission is to make education free and accessible to all. Duolingo was founded in 2011 and is based in Pittsburgh, Pennsylvania.

Buy -
Buyer

Hellman & Friedman

San Francisco, California, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1984
PE ASSETS 50.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Hellman & Friedman (H&F) is a large private equity firm on the West Coast of the US. H&F focuses on control and minority investments in a variety of transaction structures and will consider opportunities across the US and Europe. H&F seeks buyouts and business in need of restructurings that operate in defensible markets with predictable revenue and earnings growth. Target sectors include financial services, healthcare, indusrial, energy, insurance, media, marketing, professional services, software, and information services. H&F's target equity investment size is $300 million to $1 billion. Hellman & Friedman was formed in 1984 and has offices in San Francisco, New York City, and London.


DEAL STATS #
Overall 58 of 87
Sector (Internet Software and Services) 6 of 10
Type (Secondary Buyout) 14 of 25
State (Illinois) 4 of 6
Country (United States) 40 of 60
Year (2014) 1 of 4
Size (of disclosed) 20 of 39
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-01-24 Scout24

Munich, Germany

Scout24 is a proivder of online market places. The six marketplaces of the Scout24 Group - ImmobilienScout24, AutoScout24, FriendScout24, FinanceScout24, JobScout24 and TravelScout24 - are present in 22 countries As a strong partner, Scout supports its customers in important decisions, in particular in the fields of housing, mobility, partnership and finance. Scout24 was founded in 1998 and is based in Munich, Germany.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-01-27 Sedgwick

Memphis, Tennessee, United States

Sedgwick is a global provider of technology-enabled risk, benefits and integrated business solutions. The Company provides technology-enabled claims management solutions for workers’ compensation, disability, liability, and property claims. Sedgwick was founded in 1969 and is based in Memphis, Tennessee.

Sell $2.4B
Buyer

JMI Equity

La Jolla, California, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1992
PE ASSETS 7.5B USD
Size Mega
Type Sector Focused
DESCRIPTION

JMI Equity is a private equity firm focused on investments in software, internet, business service, and healthcare IT. Targeted businesses typically help automate and optimize business and information technology processes. The Firm will consider investments at all stages of development, including early-stage companies, self-funded businesses requiring growth capital, and later stage businesses in need of buyout or recapitalization funding. JMI looks to commit at least $10 million per transaction. JMI Equity was formed in 1992 and maintains offices in San Diego and Baltimore.


DEAL STATS #
Overall 72 of 125
Sector (Internet Software and Services) 15 of 40
Type (Secondary Buyout) 4 of 8
State (Illinois) 4 of 5
Country (United States) 65 of 109
Year (2014) 2 of 3
Size (of disclosed) 3 of 11
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-01-08 SiriusDecisions

Wilton, Connecticut, United States

SiriusDecisions, Inc. is a provider of subscription research and advisory services for sales and marketing executives. SiriusDecisions helps its subscribers understand and better utilize the expanding number of sales and marketing channels through which they engage with their consumers.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-04-03 Businessolver

West Des Moines, Iowa, United States

Businessolver is a provider of software as a service (SaaS) employee benefits administration solutions. Businessolver was founded in 1998 and is based in West Des Moines, Iowa.

Buy -
Buyer

Stone Point Capital

Greenwich, Connecticut, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1994
PE ASSETS 25.0B USD
Size Mega
Type Sector Focused
DESCRIPTION

Stone Point Capital is a private equity firm that targets investments in financial services sector. Specific areas of interest include insurance underwriting, outsourcing service providers to financial institutions, specialty lending and other credit opportunities, employee benefits and healthcare, asset management/retirement savings, and banking/depository institutions. Stone Point looks to commit between $5 and $500 million of equity per transaction and will consider control or substantial minority positions. Geographic areas of interest include North America and Europe. Stone Point Capital was formed in 1994 and is based in Greenwich, Connecticut.


DEAL STATS #
Overall 60 of 102
Sector (Internet Software and Services) 3 of 8
Type (Secondary Buyout) 5 of 23
State (Illinois) 3 of 4
Country (United States) 49 of 89
Year (2014) 1 of 6
Size (of disclosed) 6 of 15
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2013-12-01 Hodges-Mace Benefits Group

Atlanta, Georgia, United States

Hodges-Mace Benefits Group, Inc. is a provider of employee benefits enrollment and administration services to large corporate clients. Hodges-Mace empowers employees and employers to make smarter benefit decisions through a combination of innovative technologies and proven employee education and enrollment services. Hodges-Mace Benefits Group, Inc. was founded in 2004 and is based in Atlanta, Georgia.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-01-27 Sedgwick

Memphis, Tennessee, United States

Sedgwick is a global provider of technology-enabled risk, benefits and integrated business solutions. The Company provides technology-enabled claims management solutions for workers’ compensation, disability, liability, and property claims. Sedgwick was founded in 1969 and is based in Memphis, Tennessee.

Sell $2.4B

Seller(S) 2

SELLER

Bain Capital Private Equity

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1984
PE ASSETS 44.2B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Bain Capital Private Equity (BCPE), is the private equity investment arm of alternative asset management firm, Bain Capital. BCPE targets leveraged buyout and growth capital transactions in a wide variety of industries including information technology, communications, media, healthcare, industrial/manufacturing, retail/consumer, and financial services. Bain Capital is based in Boston with additional offices in New York, London, Mumbai, Hong Kong, Shanghai, Tokyo, and Munich.


DEAL STATS #
Overall 57 of 137
Sector (Internet Software and Services) 1 of 4
Type (Secondary Buyout) 14 of 28
State (Illinois) 3 of 3
Country (United States) 40 of 84
Year (2014) 2 of 9
Size (of disclosed) 14 of 44
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-01-08 MedHOK

Tampa, Florida, United States

MedHOK, Inc. is a provider of software-as-a-service (SaaS) solutions for health plans offered by insurance companies, health systems and companies that administer drug benefits.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-03-24 Nets

Ballerup, Denmark

Nets is a payments processing utility for the Nordics region. Nets connects banks, businesses, public sector organizations, merchants and consumers through an international network facilitating digital payments. Nets was founded in 1968 and is based in Ballerup, Denmark.

Buy kr.17.0B
SELLER

The Carlyle Group

Washington, District of Columbia, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1987
PE ASSETS 376.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION
Carlyle's corporate headquarters on Pennsylvania Ave. in Washington, DC.
Carlyle's corporate headquarters on Pennsylvania Ave. in Washington, DC.

The Carlyle Group is a global investment firm that pursues private equity, credit, and real estate investments worldwide. Carlyle's private equity practice practice pursues buyouts, strategic minority equity investments, equity private placements, consolidations and buildups, and growth capital financings. With offices in 19 countries, Carlyle can easily target opportunities throughout North America, Europe, Asia, Australia, the Middle East/North Africa and Latin America. Broad sectors of interest include aerospace, defense, automotive and transportation, consumer, retail, energy and power, financial services, healthcare, industrial, infrastructure, technology services, business services, telecommunications and media. The Carlyle Group was formed in 1987 and is based in Washington DC.


DEAL STATS #
Overall 246 of 442
Sector (Internet Software and Services) 11 of 15
Type (Secondary Buyout) 45 of 113
State (Illinois) 8 of 14
Country (United States) 154 of 250
Year (2014) 4 of 24
Size (of disclosed) 20 of 130
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-01-23 J&J Africa

Beira, Mozambique

J&J Africa is a transporter and logistics provider specializing in reliable and efficient international transportation along the Beira Corridor. J&J also offers state of the art warehouse facilities for the handling of bulk and container cargo. J&J Africa was established in 1995 and is based in Beira, Mozambique.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-01-27 Lily O Brien s

Kildare, Ireland

Lily O’Brien’s is a manufacturer of premium chocolates and desserts sold in 16 countries. Lily O’Brien’s primary focus is premium branded chocolate and it offers a diverse range of chocolate products including gifting, every day, self-treat, and seasonal products. Lily O'Brien's was founded in 1992 and is based in Kildare, Ireland.

Buy -