InsPro Technologies to be acquired by NJ software company for $12 million

Tom Paine

Eddystone-based InsPro Technologies, which provides an enterprise software platform for companies in the life insurance & annuities business, agreed to be acquired by New Jersey-based Majesco ((NASDAQ: MJCO) last week for $12 million. InsPro had raised $35.4 million, the bulk of it from Radnor-based Cross Atlantic Capital Partners, a VC firm that hasn’t been active for some time. The late Pete Musser was said to be another investor.

This document may explain Musser’s involvement.

Some people other than Cross Atlantic once thought InsPro (formerly Health Benefits Direct) had the potential to become more than it would. In fact, it had a complicated relationship with iPipeline, whose software was complementary to InsPro in some cases. Technically Philly reported that in 2009 there were acquisition discussions between the two companies as demonstrated by this SEC document.

iPipeline went on to be acquired for $1.6 billion a decade later.

My own impression from a distance was that InsPro’s solution was too complex and customized for its own capabilities (See my 2012 piece). But maybe it will get a better chance to sustain growth with a larger company.

For the first nine months of 2019, InsPro had revenue of $10.6 million vs. $16.6 million in 2018. Net loss was $1,611,651 in the nine months ended September 30, 2019 as compared to net income of $2,169,046 in prior year’s nine months. It reported having more than 50 employees as of last week.