Symbility Solutions Inc., a wholly-owned subsidiary of Automated Benefits Corp., provider of claims processing and estimating software for the property & casualty insurance industry, has closed the previously announced transaction to acquire Marshall & Swift/Boeckh’s (MSB) claims division.
MSB is a wholly-owned subsidiary of Decision Insight Information Group, Inc. Decision Insight is indirectly wholly-owned by Property Data Holdings Ltd., a portfolio company of TPG Capital.
As part of the transaction, Automated Benefits issued 52,189,286 common shares with an approximate value of C$18.1 million, to MSB and certain of its affiliates, which represents 30 percent of the common shares issued and outstanding immediately following the issuance, after adjusting for issued and outstanding options to acquire common shares.
“We are extremely excited to have completed this transaction that augments Symbility’s existing expertise in claims processing, loss estimating solutions, and process analytics technologies, making us a stronger alternative in the market. We are uniquely positioned to provide innovative and flexible tools that deliver a better claims experience for insurance carriers, vendors and the entire claims community,” says James Swayze, CEO of Symbility.
In addition, in connection with the Transaction, MSB purchased by way of a private placement 7,021,530 Common Shares at a price of C$0.27 per Common Share for aggregate gross proceeds to the Corporation of approximately $1.9 million, which proceeds will be used for general working capital purposes. As a result, Property Data, indirectly, owns 33.29 percent of the current outstanding common shares as of the closing of the transaction and is the largest shareholder of the corporation.
Two representatives from Decision Insight, a portfolio company of TPG, and one representative from TPG, have also been elected to the Automated Benefits board of directors: Chris Cartwright, CEO, MSB and Decision Insight; Chris Jutkiewicz, CTO, Decision Insight; and Nehal Raj, a principal in the technology group of TPG.
“Since announcing our plans to join forces with Symbility on January 25th, our customers and industry partners have responded with enthusiasm to the prospect of having the proven, market-driven, enterprise solution that this combination represents,” says Cartwright. “The integration of MSB’s loss estimating data with Symbility’s workflow software to deliver this best-in-class solution, along with our investment in Symbility’s parent company, reinforces MSB’s long-term commitment to the property claims industry and supports our strategy to be the premier enterprise information, analytics, and workflow provider to property insurers.”
“TPG is enthusiastic about the prospects for Symbility Solutions and its strategic collaboration with MSB,” says Raj. “We are committed to building a market-leading franchise in this space, investing behind Symbility’s compelling growth prospects and strong management team.”