Private Business Sells InsuranceManager Business

Private Business Inc. of Brentwood, Tenn., a provider of cash flow and retail inventory management solutions for community banks and small businesses, reported it has sold the assets of its InsuranceManager(TM) business to a newly formed entity, InsurManager LLC (InsurManager).

The new entity was formed by James Arnold, the current president of InsuranceManager, together with 2nd Generation Capital LLC, which specializes in principal investments, placements, mergers and acquisitions, advisory services and valuations. Specific terms of the agreement were not disclosed.

Commenting on the sale, Henry M. Baroco, CEO of Private Business Inc., said, “This transaction, which closed on June 30, 2003, sharpens our management team’s focus on our core businesses while recouping the value of the assets employed in InsuranceManager. As we continue to evaluate our product portfolio, we have decided to go in a different strategic direction with insurance services. We retain the existing credit and fraud insurance programs and continue marketing our new lender environmental liability insurance coverages, which are a great value to our banks and are aligned with our core products.”

Baroco continued, “Our ability to participate in the insurance sector through the co-marketing agreement with InsurManager gives us the opportunity to continue to provide our banks with multiple services. InsurManager will be focused on insurance services, which creates a mutually beneficial arrangement between the two organizations. InsurManager’s strategic direction, insurance expertise, and commitment to growth will help them prosper, which benefits PBI through the co-marketing agreement. This represents yet another step in our plan to strengthen Private Business and improve future results.”

Topics Mergers & Acquisitions