After concluding a series of acquisitions in Canada, iPipeline has been bought out by Roper Technologies.
In March, iPipeline acquired Bluesun to gain a solid footing in Canada. Now the firm has been purchased by a diversified fintech, Roper Technologies, also from the US, in an all-cash transaction valued at US$1.63 billion.
Roper expects iPipeline to contribute US$200 million of revenue and US$70 million of after-tax free cash flow in 2020, excluding the impact of fair value accounting for deferred revenue and financing costs. The fintech consolidator expects the acquisition to be immediately profitable and deliver high single digit organic revenue growth.
Musical chairs
As part of this transition, which will close in the third quarter, Tim Wallace is stepping down as CEO. He will be replaced by longtime partner Larry Berran, the former Chief Operating Officer and Chief Financial Officer of iPipeline. Wallace will stay on as a strategic advisor.
The firm will maintain its Exton, Pennsylvania, headquarters, and no brand changes should ensue from this transaction.
Canadian strategy intact
Since acquiring Bluesun in Canada, iPipeline counts Manulife, Faith Life, CIBC, and Foresters Financial among the users of its iGO e-App product in Canada. When it landed Foresters in August, iPipeline told Insurance Journal that it wanted to build the largest network between suppliers and MGAs in Canada.
The fintech specializing in electronic signatures and other transactional and back office systems confirms that it is pursuing its Canadian expansion. “Our recent acquisition by Roper will not change our Canadian strategy,” Michael Persiano, Chief Marketing Officer at iPipeline, told Insurance Journal.
He suggests that this transaction will help iPipeline continue to penetrate the Canadian market. “Roper Technologies brings exceptional financial strength to iPipeline.”
Support from a diversified giant
iPipeline’s buyer is a diversified technology company that generated revenue of US$5.2 billion and a net profit of US$944 million in 2018. It is a constituent of the S&P 500, Fortune 1000 and Russell 1000 indexes. Roper says it regularly acquires well-run niche technology firms that show solid and sustainable growth potential. Its website states that it specializes in four sectors: application software; network software and systems, measurement and analytical solutions; and process technologies.
Roper selected iPipeline because its history of profitable growth and dominant position in its key markets make it a choice target for Roper’s long-term strategy. Roper Technologies President and CEO Neil Hunn is excited to add another industry-leading, cloud software business to his family, one with a history of strong organic growth, and high customer retention.
“We look forward to supporting iPipeline as they execute on numerous future growth opportunities while expanding the benefits enjoyed by their large and growing network of carriers, distributors, and agents,” he says.
Larry Berran sees the acquisition by Roper as a great opportunity for iPipeline clients, employees and partners. Roper is providing a long-term foundation that lets his company develop its insurance and financial services platform. “Roper’s commitment to sustained investment in our business model, products, services, and employees means we will continue to deliver these solutions and domain expertise that have driven significant value for our customers for 25 years,” the CEO says.
