Vertafore Inc., a provider of software and services to the insurance industry, today announced that it has signed an agreement to acquire Sircon Corporation.

Financial terms of the deal were not disclosed, nor would the companies reveal whether the transaction involves stocks or cash.

Sircon, based in Okemos, Mich., serves the insurance market by connecting carriers, agencies and brokers, agents, education providers, and state regulators through a suite of online services that allows companies to manage compliance and producer information and helps agents get licensed and appointed, said Bothell, Wash.-based Vertafore.

According to Euan Menzies, president and chief executive officer of Vertafore, “Our acquisition of Sircon will further expand Vertafore's solutions to help companies and individual producers in the insurance industry keep track of requirements needed to sell insurance in all 50 states. Sircon fits perfectly with our mission of improving channel productivity, and we believe Sircon's offering will be valuable for our broker and carrier customers.”

Sircon Corporation provides solutions to automate licensing and compliance requirements, said Vertafore. Serving the producer management needs of both the insurance industry and state government regulators, the company offers a complete suite of integrated, end-to-end insurance compliance products and services.

According to Vertafore, the acquisition will benefit its customers because “Sircon solutions can help our customers process, manage, monitor and track the activities and necessary interactions occurring between individual agents (or producers) and carriers, agencies/brokers, education providers and state regulators. Several Vertafore customers have expressed that this is a pain point for them today, and as our customers grow, the need to manage many producers representing many carriers in many states will grow as well.”

“Since both Sircon and Vertafore are focused on solving business needs across the insurance marketplace, we feel this is an extremely positive move for us and the industry as a whole,” said Bob Nero, president and CEO of Sircon Corporation.

Vertafore said it plans to add Sircon's Compliance Express product to the Producer Center in AMS 360.

“This will allow AMS 360 users to more efficiently apply for licenses, renew licenses, track continuing education requirements, and manage other tasks related to licensing and contracting, resulting in time savings and improved compliance,” the company noted.

Sircon will operate as a wholly owned subsidiary of Vertafore, the announcement said. The current office in Okemos will continue to exist, and there is no plan to move or reduce the 120 employees.

“This acquisition strengthens Vertafore's position in the distribution end of the insurance technology market, expanding their presence beyond the P&C independent agent channel into life/annuity and captives as well,” said Matthew Josefowicz, director of the insurance practice at New York-based Novarica.

“Coming on the heels of the Oracle/AdminServer acquisition, this is another good example of the continuing wave of consolidation in the insurance technology marketplace that Novarica expects this year,” he said.

The acquisition is expected to close prior to July 30, subject to customary closing conditions, the announcement said.

Special Reports /

Vertafore To Acquire Sircon

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