Leading global private investment firm likes company’s growth prospects and management strength

Applied Systems Chairman and CEO James P. Kellner announced that Bain Capital Partners will be his new ownership partner in the industry-leading agency management system company.

Bain Capital and Kellner have signed a definitive agreement to purchase Applied Systems from Vista Equity Partners, LLC, the San Francisco-based private equity firm that partnered with Kellner in September 2004 to buy the company from founder Robert Eustace. Kellner remains as Chairman, CEO, and a significant investor in the insurance technology company that he has helped develop for more than 20 years.  

Bain Capital is a global private investment firm based in Boston that has $38 billion in assets under management. The firm cites sound growth potential, superior technology, a strong management team, and excellent customer service among the factors that make Applied Systems a valuable investment.

“We are excited to support Jim Kellner and his management team as they continue to grow the business,” said Andrew Balson, a managing director at Bain Capital, which has made investments in many technology and business services companies. “We respect Applied Systems’ special blend of experience, technical expertise, and vision that consistently yields successful products and services. We believe Applied Systems customers are benefiting from the best-designed suite of products, and the most user-appropriate agency management system technology, in the marketplace.”

Bain Capital’s investment comes at a time when Kellner and his management team have aggressive growth plans well under way.  Kellner said Bain Capital’s commitment validates Applied Systems’ progress in product development as well as in customer growth and relationship management.

“Our product development remains on course and will not deviate with our new owner partners,” Kellner said. “Over the past two years, we have made remarkable progress in adjusting and refining our technology development process. In addition, we have invested heavily in growing our sales force and managing our customer relationships, all to strengthen our commitment to protect our customers’ technology investments.”

“Vista was exactly the partner we needed as we positioned ourselves for the next phase in our growth,” Kellner said. “We were well-served by Vista’s commitment and guidance. With Bain Capital, we are now poised for even greater growth that will benefit our customers and everyone in the Applied Systems community.”

Applied Systems, Inc., is the world leader in insurance agency and broker management system software. The company provides insurance agency automation through products and services for accounting, customer, policy, claims management, and all related agency functions. More than 120,000 users in 10,000 agencies—many of them multi-office conglomerates—use Applied Systems technology and services. The company leads the industry in agency/carrier real-time and batch communication solutions. Applied Systems automates insurance transactions at every distribution level from consumer through carrier, providing technical support and professional services to maximize customers’ return on investment. www.appliedsystems.com