Thoma Bravo seeks buyer for iPipeline

  • Company is expected to sell for about $2 bln: sources
  • Company produces $70 mln to $90 mln in Ebitda: sources
  • Thoma Bravo acquired iPipeline in August 2015

By Luisa Beltran and Milana Vinn

Thoma Bravo has put iPipeline up for sale after nearly four years, seven sources said.

IPipeline, which provides cloud-based software for life insurance companies, produces about $70 million to $90 million in Ebitda and is expected to sell for about $2 billion, sources said.

Credit Suisse is advising on the process, five of the sources said.

IPipeline, founded in 1995, is based in Exton, Philadelphia, and employs more than 600 people.

The company has made several acquisitions, including Bluesun Inc in March. Other deals include acquisitions of AlphaTrust, TCP LifeSystems and Laser App Software, according to PitchBook.

Thoma Bravo acquired iPipeline in August 2015. Sellers at the time include NewSpring Capital, Technology Crossover Ventures and Volition Capital. Credit Suisse advised iPipeline in the sale to Thoma Bravo.

It’s unclear which fund Thoma Bravo used to invest in iPipeline. The tech-focused firm raised $12.6 billion for its latest flagship in January 2019, Reuters reported. Thoma Bravo Fund XII closed on $7.6 billion in 2016 while Fund XI weighed in at $3.65 billion.

IPipeline is the latest insurtech company to come to market. CVC recently agreed to buy a majority of Vitech Systems, which provides software to insurers.

Meanwhile, insurance software company Insurity announced on June 21 announced a definitive agreement for a recap with GI Partners. The recap is expected to be completed in the third quarter of 2019. Insurity is backed by General Atlantic, Genstar Capital and TA Associates.

Credit Suisse declined comment. Executives for Thoma Bravo and iPipeline could not be reached for comment.

Action Item: For more information contact iPipeline CEO Tim Wallace at (484) 348-6555.

Note: This story was updated on June 28, 2019. It was edited for clarity and new information was added about Insurity announcing a recapitalization deal with GI Partners.