HGGC has bought AIMC LLC, a distributor of medical supplement products, to merge with its insurance portfolio company Integrity Marketing Group LLC. HGGC, led by CEO Rich Lawson, is among the PE firms championing the insurance industry as the sector that could greatly improve from technology upgrades.

AIMC operates as an insurance distribution and brokerage company. The Atlanta, Georgia-based target designs senior insurance products that include: medicare supplements, whole life insurance, and convalescent care coverage. The AIMC and Integrity merger creates a health and life insurance distributor tailored for the evolving insurance market. The target has been in business for more than 24 years.

“Not only are we adding a major player to Integrity, but we are investing in the technology, systems and people that help to form a true shared service platform,” states HGGC managing director Steve Young, who played quarterback for the San Francisco 49ers.

HGGC backed Integrity in July 2016. 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. Altogether, Integrity and AIMC’s afflilated agencies in its network serve more than 120,000 independent agents. The current deal reinforces Integrity’s plan to grow the business organically and through acquisitions.

HGGC is a middle-market private equity firm based in Palo Alto, California with more than $4.3 billion in capital commitments. The PE firm was founded in 2007 as Huntsman Gay Global Capital, named after two investors: Jon Huntsman Sr., chairman of chemical maker Huntsman Corp. (NYSE: HUN), and Robert Gay, a leader in the Church of Jesus Christ of Latter-Day Saints. The firm won Mergers & Acquisitions M&A Mid-Market Private Equity Firm of the Year award for 2014.

Rich Lawson, CEO of private equity firm HGGC, has spoken publicly about the insurance sector's ripeness for technology improvements.
Rich Lawson, CEO of private equity firm HGGC, has spoken publicly about the insurance sector's ripeness for technology improvements. HGGC

HGGC has been quite active across the middle market lately. Notable deals by the private equity firm, include HGGC's buying of event management software Etouches; acquiring of online marketing research company Instantly Inc; purchasing of vitamin distributor Nutraceutical; and the backing of insurance claims provider Davies Group. The firm also closed its third fund with $1.84 billion in capital commitments in December 2016.

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Kamaron Leach

Kamaron Leach

Kamaron Leach joined SourceMedia in 2016, serving as Reporter of Mergers & Acquisitions. Kamaron writes the Finance Finesse column about investment banking and lending, and also covers the media and entertainment sector.