NexPhase Capital, LP has agreed to sell Flexible Architecture & Simplified Technology LLC (FAST), a software company for the life insurance and annuity industry, to Verisk Analytics Inc.
The purchase price is $193.5 million subject to the completion of customary closing conditions.
NexPhase, an operationally focused private equity firm and sub-advisor to the Moelis Capital Partners Opportunity Funds, has announced that it has entered into a definitive agreement to sell FAST to Verisk.
The firm has completed nearly 60 investments including add-ons and targets control equity investments between $25 million and $75 million.
Moelis Capital Partners LLC, a subsidiary of Moelis Asset Management LP, is a middle market private equity firm founded in 2007. MCP co-manages approximately $872 million of committed private equity capital with NexPhase Capital.
Founded in 2010, FAST, a privately held company located in Iselin, New Jersey, is a leader among technology companies, supporting the insurance industry’s modernization efforts.
The Company provides core software that allows life insurers to efficiently enhance or replace their legacy policy administration, new business, and distribution management systems.
Since partnering with FAST in 2015, the NexPhase team has worked closely with the co-founders to further establish the Company’s position in the insurance software industry.
“With their strategic, operational, and industry expertise, the NexPhase team has been a tremendous partner to FAST as we have established ourselves as a leader in the industry,” said FAST Co-founder and Chief Executive Officer Tom Famularo.
He claimed NexPhase’s support and guidance have enabled them to expand their platform and more than double their customer base.
“We are incredibly proud of the progress FAST has achieved in helping life insurers modernize their businesses and keep up with the realities of today’s digital world,” said Joel Killion, a Partner at NexPhase Capital.
“Working in close partnership with the Company’s outstanding leadership team, we have seen firsthand what makes FAST such a special partner to its customers. We wish Tom and the entire FAST team well, and we are confident that they will experience continued growth and success.”
The NexPhase team has significant experience investing in software and services companies. Current and previous investments include Surgent, Brandt Information Services, OmniSYS, Insurance Technologies, Inside Real Estate, SwipeClock, and Mxi Technologies.
William Blair acted as exclusive financial advisor to NexPhase and FAST on this transaction, and Lowenstein Sandler LLP acted as legal advisor.
