Terminus Capital Partners acquires Andesa Services

Terminus Capital Partners has acquired a majority stake in Andesa Services, marking its entry into the niche market of life and annuity insurance software. While the financial specifics remain undisclosed, the deal is significant for positioning Andesa for enhanced growth and innovation in a complex segment of the insurance industry.

The acquisition results in a partnership between Terminus and the current management team at Andesa, which will focus on scaling its platform and enhancing its product offerings. Established over 40 years ago, Andesa is a software solutions provider known for its expertise in managing policy lifecycle administration for complex products such as BOLI, COLI, ICOLI, and private placement life insurance. Their services, which also include policy transaction management and recordkeeping for non-qualified deferred compensation, cater to carriers and brokers managing sophisticated financial products.

Under the majority ownership of Terminus, Andesa plans to intensify its investment in application development, aiming to improve the scalability and adaptability of its software solutions. The company envisions forming strategic partnerships and nurturing innovation to meet evolving demands in the insurance software market. Despite the new ownership structure, Andesa will retain its leadership team, service model, and brand, ensuring continuity for its clients.

This acquisition aligns with the strategic vision of Terminus Capital Partners, which focuses on business software firms, leveraging its operational expertise to foster growth through a buy-and-build strategy. Alex Western, Founder and Managing Partner of Terminus, highlighted the potential of the advanced markets segment and expressed confidence in Andesa’s leadership to expand its influence in this high-growth area.

The transaction was facilitated by financial advisor ButcherJoseph & Co. on Andesa's side, with legal counsel from Levenfeld Pearlstein. Terminus was advised by KeyBanc Capital Markets, with legal counsel provided by Jones & Spross. The deal underscores a broader trend of consolidation and partnership in the insurance software sector, as firms seek to enhance technological capabilities and market reach.

Moving forward, the collaboration between Terminus and Andesa will be pivotal in navigating the regulatory landscape and tapping into emerging opportunities in the life and annuity sphere. The focus will remain on innovation and client satisfaction, ensuring sustained growth and relevance in a competitive domain.