HgCapital has announced that it has sold Relay Software, a leading provider of software to insurance brokers, underwriters and insurers in the Republic of Ireland, to Applied Systems, the leading global provider of cloud-based insurance broker management software.
HgCapital partnered with Relay Software in early 2014, representing the third investment for Mercury, HgCapital’s specialist lower mid-market TMT fund. This exit marks the first full realisation for the Mercury fund, following four prior successful recapitalisations across the portfolio.
Founded in 1985, Relay Software has since grown to become one of the leading providers of technology to the insurance industry in the Republic of Ireland. With a skilled staff of 92 based in its offices in Belfast and Dublin, Relay enables the insurance broker channel in Ireland with its leading technology solution: a seamless front and back office solution which, supported by Relay’s excellent customer service, provides its broker customers with the tools that they need to manage a successful insurance business. Additionally, the company also provides software solutions to many of the largest insurance and underwriting firms operating in the Republic of Ireland.
During HgCapital’s ownership period, Relay delivered 14% revenue CAGR (FYE January 2014 – 2017F), driven by new customer wins and an expansion into complementary adjacent customer segments such as Commercial Insurance and Wealth Management. HgCapital supported the business’ management team on a number of initiatives including investing in new product offerings, improving operational capabilities and delivering accretive bolt-on M&A. The company has also grown from 71 to 92 employees in the same time period.
HGT : Hg sells Relay Software