Advised Corsair, a FinTech-focused PE firm, on its acquisition of RGI, a leading European InsurTech provider
Jan 2018
acquired
  • Sector: Fintech, WealthTech & InsurTech
  • Deal Type: Private Equity Deals
  • Engagement type: Buyside
  • Size: $200-500m
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Arma Partners is pleased to announce that it has acted as exclusive financial advisor to Corsair Investments LP on the acquisition of RGI S.p.A., a leading provider of insurance software solutions to the European market, from Ardian’s Expansion Fund.

Headquartered in Ivrea, Italy, RGI provides P&C and life policy administration solutions to insurers, bancassurance, agents, brokers and financial consultants which address core insurance processes, including policy administration, claims, analytics, market management, reporting and sales and distribution. The company has over 800 employees with 12 offices across Europe and over 400 customers.

This transaction demonstrates Arma Partners’ deep sector expertise in the insurance technology sector and our ability to work closely with private equity firms to successfully navigate competitive auction processes.

-RGI S.p.A. is a leading provider of insurance software to the Italian, French and German insurance markets

-Founded in 1987 and headquartered in Ivrea, Italy, RGI provides a comprehensive and modular offering which addresses core insurance processes, including policy administration, market management and sales and distribution

-RGI has digitised the business of more than 100 insurance companies and 300 brokers across different geographies

-RGI employs c.800 professionals operating from 12 offices in Italy, Ireland, France, Germany, Tunisia and Luxembourg

-Founded in 1992, originally within J.P. Morgan & Co., Corsair has been a pioneer private equity investor in the global financial services sector

-Based in New York and London with a team of 28 professionals

-Corsair Capital has invested across a range of geographies and in substantially all of the subsectors of the broad financial services industry including wealth & asset management, payments & financial technology, banking & specialty finance, insurance, and services

-Corsair Capital has completed $7.6 billion in equity investments since its inception

-Market – In the context of a highly fragmented European insurance software market, RGI can be a perfect M&A platform to create the largest pan-European InsurTech player

-Product – RGI provides one of the most technologically advanced solutions in the market, with broad functionality

-Business model – RGI has high recurring revenues, proven cross-selling capabilities, and a strong and robust new business pipeline

-This investment underscores Corsair Capital’s commitment to the attractive and growing insurance technology industry:

  • European insurers’ spend on core IT systems is expected to grow at c.2.5% p.a. from €7.3bn in 2016, with commercial off the shelf solutions expected to grow at c.7% p.a. from €1.2bn in 2016

-Arma acted as exclusive financial advisor to Corsair Capital in the acquisition of RGI from Ardian

-The transaction illustrates Arma’s leadership in advising companies in the FinTech sector, leveraging its deep domain expertise and first class execution capabilities

-Arma supported Corsair in the acquisition process, including:

  • Coordination of due diligence
  • Valuation
  • Preparation of material on M&A targets and exit opportunities
  • Preparation of investment committee memorandum
  • Management of VDR and Q&A
  • Support to negotiations

-This transaction highlights Arma’s long-standing track record of working with private equity clients to secure successful cross border deals”