The deal comes about six months after Insurance Technologies was sold to Boston-based private equity firm Thomas H. Lee Partners to help it develop its sales automation software for the life insurance and annuities industries more quickly and make acquisitions that add to its technology.
Terms of the IXN deal weren’t disclosed, but IXN’s 12 employees are expected to remain in Utah, said Insurance Technologies CEO David Fenimore.
“As the insurance industry continues to innovate, we must find ways to deliver increasingly specialized yet integrated solutions for advisers, agents, distribution partners and carriers,” Fenimore said.
“The addition of IXN’s industry-leading suite of products for life insurance rapidly advances our FireLight product roadmap for life insurance, providing the full ecosystem in a single, easy-to-use application.”
Insurance Technologies had been developing its mobile application, but Fenimore said the acquisition would allow the company “to accelerate what we were doing. We saw this as an opportunity to take the next step.”
The two companies had discussed a partnership, but Fenimore said an acquisition was a “good strategic fit for us” and would allow Insurance Technologies to gain scale immediately.
The acquisition comes as Insurance Technologies is expanding in Colorado Springs. The company has about 20 openings for project managers, software engineers, quality assurance specialists, business analysts and relationship management sales personnel, with plans to add another 20 after those positions are filled, Fenimore said.
Insurance Technologies employs 260 people, with about two-thirds at its downtown Colorado Springs headquarters in the Palmer Center complex.
“We see an opportunity to grow the company. There is a great (growth) opportunity in the pure life insurance market and the distribution firms that are associated with that,” Fenimore said.
The company’s five-year growth plan, which it is updating, calls for Insurance Technologies to become five times its current size by expanding its reach in the life insurance and annuities markets while also moving into other financial services, including wealth management, group and worksite marketing and auto and homeowners insurers.