GTCR wraps up ADP deal

Chicago’s GTCR Golder Rauner completed its $975 million buyout of Automatic Data Processing’s Claims Services Group.

Finalising a deal first announced in February, GTCR Golder Rauner has completed its $975 million (€805 million) acquisition of Automatic Data Processing’s Claims Services Group. The Chicago firm bought the company through its Solera insurance outsourcing platform.

GTCR launched Solera in February 2005 in partnership with Tony Aquila. Aquila came from Mitchell International, a provider of insurance claims software. GTCR initially committed $100 million to the Solera platform, but with the acquisition of the ADP division GTCR subsequently upped its equity stake.

Craig Bondy, a principal at GTCR, told PEO in February that the firm would not be actively seeking new deals following the latest buyout, but could still make a few smaller deals under certain circumstances.

ADP’s former Claims Services Group has a global customer base numbering over 50,000 clients. The company generates annual revenue of more than $410 million.

The deal immediately gives Solera a global footprint. The company operates in more than 25 international markets, under the names Audatex in the US and Canada, Informex in Belgium, Sidexa in France and ABZ in The Netherlands.

Equity for the deal came out of GTCR’s eighth fund, the 2003-vintage, $1.85 billion GTCR Fund VIII LP. Goldman Sachs and Citigroup provided debt to help finance the transaction.

Kirkland & Ellis served as legal counsel to the buyers, while PricewaterhouseCoopers assisted with the accounting due diligence.