11 April 2018 13:30
Photo : Freepik
Equisoft has acquired Kronos Technologies Wednesday, April 11, in a transaction that is a merger. It includes an exchange of shares and liquidity the amounts were not disclosed.
In the wake of this merger-acquisition, François Levasseur remains CEO of Kronos and Luis Romero, president and CEO of Equisoft. The two partners do not intend to change the name of Kronos, to this day, they said in an interview with the Journal of insurance. Similarly, the teams each remain in place, report.
“At the end of the transaction, we become a single company. The entire team of Kronos is attached to ours, but remains in place in Québec city. Equisoft going from 300 to 360 employees. We purchased Kronos in part in money, and given to the rest of the acts of Francis who becomes a shareholder of Equisoft, ” says Mr. Romero.
François Levasseur adds that the two teams have shared values. “We remain independent, but will work together a lot, with a change of its ways of doing things. Our team continues to work in Quebec. We take advantage of the proximity with the insurers in Quebec. “
Mr. Levasseur added that the transaction is a result of joint discussions. “This is not the one who approached the other. The merger was done naturally because it was linked to our priorities and aspirations, and, on the other. “
Synergies and springboard global
The two companies were already in strong growth and the transaction will bring a lot of synergies, ” adds the president of Equisoft. François Levasseur says. “It is a great leap forward as a comprehensive system can offer the industry. It is 1 +1 = 3. We realize the synergies are very important in integrating the tools of these two vendors, ” said François Levasseur, who has long advocated the importance of integrating the different systems of electronic data in a single ecosystem. “With the transaction, we are gaining years of strategic development “, he believes.
Luis Romero also think that Equisoft will be a springboard for the products of Kronos, in Canada and outside of Canada. For his part, François Levasseur revealed that international openness has weighed in the balance, so that Equisoft is present in several countries. “It was our intention to export our products elsewhere in the world,” added Mr. Levasseur.
Equisoft provides among other insurers, the system of back office and Oracle Insurance Policy Administration (OIPA) under license of the american company Oracle. The Capital, iVari and UV Mutual are among the insurers who have adopted OIPA. Equisoft also offers solutions for electronic application and illustration of police. For its part, Kronos is well-known advisors to its Web and mobile apps, client management, Kronos, Finance, and financial needs analysis Kronos ABF.
“Our products are complementary and we already had several mutual clients. The merger will help us to deliver our projects faster, and we will be able to expand our activities in Quebec, which is a financial hub where revolve a lot of knowledge. This will help us to grow more quickly. We had a growth biggest outside of Quebec, and Kronos already has a multilingual presence. “
The two partners say they are now able to offer a solution end-to-end to transfer the electronic data of the adviser up to the insurer. Applications Kronos Finance and Kronos ABF built-in will connect eventually to the tool design so that the advisor can start with the data of the client, to eventually conclude a sale, ” says the CEO of Equisoft. A portal and a tool for advanced planning can serve the customer directly, which will also be able to capture its own information.
“We can go to the client management system up to the insurer, with a single vendor,” said Mr. Romero. Not all the insurers who have a global system. It is possible to integrate the various suppliers, but there is a cost. Integration is difficult and you have to maintain the points of junction between the systems. Our offer will be interesting for these insurers. “
The gateways remain
The agreements that exist between the new Equisoft software and back-office of the general agents offered by, among others, Solutions Ageman and Bluesun will remain in place. “Equisoft also had agreements with them, for example with Bluesun. Group financial Horizons (recently acquired by Great-West) is a common client. We also have agreements with Winfund and Univeris. “Luis Romero says that he will have even more to offer. He recalls that many clients cite Kronos Finance as the software that their advisors use.
The gateways remain, ” says François Levasseur. “We do not change our service offering. Rather, we’re going to improve it, and continue to invest massively. For example, our customers demand a lot of features on the assisted analysis of assets, offered by Equisoft. “
Trend to consolidation
Equisoft believes that his offer will be particularly attractive for insurers with a sales force captive. “The trend is consolidation, and the insurers’ purchase of the distributors, said Mr. Romero. It is attractive for them to be able to integrate the tools more efficiently for the advisors. It is different if they pass through a network of independent distribution, and that the adviser sells the products of different insurers. “
It is estimated that there is an obvious gain to transmit the customer data gathered by the adviser directly to the system back-office of the insurer. However, if the system of the agent-general is in the pipeline, the process is equally effective for the advisor.
In addition to the insurers, who buy from distributors, advisors gather also, note François Levasseur. “It’s a bit the same trend on the side of software suppliers, because the sinews of war, it is the integration. Each of the participants of the chain will find its account there, productivity gains are enormous for the industry in general, and a reduction in the cost of information “, according to the CEO of Kronos.