Technology Firm iPipeline Weghing IPO; $500 Million Value Possible

By and | November 6, 2014

Internet Pipeline Inc., which makes technology used by insurance companies to manage customers, data and pricing, is exploring a sale or initial public offering, people with knowledge of the matter said.

The company, which does business as iPipeline, could be valued at about $500 million in a sale, said the people who asked not to be named because the matter is private.

Insurance technology companies have been popular targets for buyout firms, which are drawn to their steady cash flow and low capital expenditures. Hellman & Friedman LLC and JMI Equity last year agreed to to buy iPipeline’s rival Applied Systems Inc. for $1.8 billion.

Based in Exton, Pennsylvania, iPipeline is backed by NewSpring Capital, Volition Capital and Technology Crossover Ventures, according to its website.

Mike Persiano, iPipeline’s chief marketing officer, declined to comment. Mike DiMartile, a representative of NewSpring Capital, didn’t return a call or e-mails seeking comment.

Private equity-owned companies frequently explore a sale and public offering simultaneously. So-called dual-track processes can pressure potential buyers to act before a target becomes public.

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