Insurtech firm Ignite Software Systems Ltd (Ignite) is set for significant expansion following its acquisition by UK reinsurance specialist Sequel.
In a deal supported by our Corporate Finance team, Ignite will become part of London-based Sequel, which is owned by $33 billion, Nasdaq-listed data analytics group Verisk. The acquisition will accelerate the expansion of Ignite’s integrated Software as a Service (SaaS) platform as it targets significant organic revenue growth with the backing of the wider group.
Ignite’s licensed platform supports policy administration, rating engine and digital engagement for brokers and MGAs, with specific domain expertise in motor, property, and pet insurance. The 30-strong business will benefit from full access to the significant technology, people, and capital resources that Sequel and Verisk offer. Sequel provides reinsurance software solutions to the global specialty market.
Ignite was advised by FRP Corporate Finance, led by Partner Heath Snyder and Associate Director Michael Bloom. Ignite’s management team was introduced to FRP with the support of Corporate Finance Partner Dave Howes. Marriott Harrison LLP acted as legal advisers.
Toby MacLachlan, Managing Director of Ignite, said: “Joining Sequel is a fantastic leap forward for Ignite, our clients and our team. For Ignite as a company it will mean winning more tenders because, whilst our technology has always outperformed the market, our balance sheet was historically that of a young company. For our existing clients, Ignite will now have access to all the world-class infrastructure, resources, security, and expertise that come with Sequel and Verisk. And for our team, whilst it’s a really exciting moment for us all, our main aim is to continue providing our newly combined technologies with our traditional personal touch even as we take on ever more ambitious projects.”
“I am grateful for the support, advice and focus of the FRP Corporate Finance team that has advised the shareholders and company with this important and transformational transaction for Ignite, its employees and its clients. Heath and Michael have helped us obtain a fantastic outcome. FRP’s professionalism, hard work and grasp of detail is rare; it has been a true pleasure to have them in our corner.”
Heath Snyder, FRP Corporate Finance Partner, said: “We are privileged to have advised the shareholders and management of Ignite, which is another Manchester-based fintech start-up success story. Being acquired by a global Nasdaq-listed group is a great testament to the business Toby and his team have created and I expect it will continue to make further inroads as it becomes a true leader in insurtech.”
Ian Summers, COO of Sequel, said: “Ignite has a strong management team and offers excellent business and technical capabilities to its client base of specialist brokers, MGAs, and insurers. The acquisition will enable us to accelerate the development of their digital platform and add a modular API driven SaaS platform to Sequel’s portfolio. The combination of Ignite with Sequel’s pricing, distribution and claims applications extends our unique and powerful capabilities for the insurance market. Ignite’s client focus and deep domain knowledge will fit seamlessly into Sequel’s business model providing new and existing clients with access to a broader expert advice and service.”