Google owner invests in Applied Systems

CapitalG, the growth equity fund of Google-owner Alphabet, has taken a minority stake in Applied Systems.

Following the nine-figure investment, Applied said it will gain access to Google’s expertise across AI, machine learning and digital marketing.

Other CapitalG investments include Lyft, Airbnb, SurveyMonkey, and Zscaler.

Executive vice president of customer experience Kris Hackney spoke to Insurance Times about what the deal will mean for brokers in a wide ranging interview on the deal and Applied Systems as a whole.

Gene Frantz of CapitalG said: “Applied Systems is a pioneer in the insurance industry, transforming the way insurers, agents and customers do business in the cloud.  

“We are excited to partner with Applied in support of its rapid growth and best-in-class technology.  We look forward to bringing some of the world’s leading experts at Google and Alphabet to drive innovation within the global insurance ecosystem.”

Over the past five years, Applied has more than doubled in size and revenue by significantly growing its product portfolio and customer base throughout the United States, Canada, the United Kingdom and the Republic of Ireland. 

“We are pleased to have CapitalG join Applied’s investor base given their deep software experience,” said Reid French, chief executive officer, Applied Systems. “We also welcome the technical expertise and resources that CapitalG brings through its connection with Google and look forward to their partnership as we continue to deliver innovation to the insurance industry in support of our growing customer base.”

Under the agreement, affiliates of Hellman & Friedman will retain majority ownership of Applied, with CapitalG joining JMI Equity and Stone Point Capital as a minority investor. 

Sameer Narang, partner at Hellman & Friedman, added: “We are excited to welcome CapitalG as a strategic partner. CapitalG’s investment is a testament to Applied’s track record of innovation and its outlook for continued product leadership. CapitalG uniquely positions Applied to take advantage of tremendous growth opportunities by further accelerating several product initiatives for the benefit of Applied’s customers and the insurance industry.”

The transaction closed in the third quarter of 2018. Terms were not disclosed. Simpson Thacher & Bartlett LLP served as legal counsel for Applied and Hellman & Friedman. Wilson Sonsini Goodrich & Rosati PC served as legal counsel for CapitalG.