Middle-market private equity firm HGGC has invested in Integrity Marketing Group LLC, an independent distributor of life and health insurance for seniors. HGGC and Integrity are also acquiring Premier Companies Inc., an insurance marketing organization.
Terms of the two deals were not disclosed, but Integrity’s owners will retain a significant stake in their company and Premier’s owners will reinvest a significant portion of their proceeds alongside HGGC and Integrity, HGGC reports. Integrity develops and distributes life and health insurance products, partnering with insurance carriers, and markets the insurance through a distribution network that includes other large insurance agencies. Collectively, Integrity and the agencies in the network serve more than 100,000 independent agents. Integrity’s leaders plan to continue to grow the business organically and through acquisitions.
“Between the strong leadership in place today, and the appetite to expand this leadership through existing and new partnerships, we believe Integrity will continue to grow with many pillars of market leadership,” says Steve Young, the former San Francisco 49ers quarterback who is co-founder of HGGC and chairman of Integrity.
Premier, based in Norfolk, Nebraska, was one of the original members of the Integrity network. The company represents more than 70 insurance carrier partners and has more than 32,000 agents in the U.S., with 170 employees in six offices, and nearly 1 million clients. In 2015, Premier sold more than $400 million in new insurance premiums.
HGGC, based in Palo Alto, California, invests in business services, consumer, financial services, health care, industrial services, information services and software companies, with $2.8 billion in total equity deployed. HGGC won Mergers & Acquisitions M&A Mid-Market Private Equity Firm of the Year award for 2014.
The firm has been active in 2016. In April, HGGC acquired a majority stake in FPX, provider of cloud software that helps businesses give quotes to sell their products. In March, HGGC sold Serena Software Inc., which makes software to make changes to application systems, to the Micro Focus (LSE: MCRO.L) software firm. And in January, the firm added Instantly Inc., an online marketing research company, to its Survey Sampling International business.