Q: What are the details of today’s announcement?
A: Applied Systems has entered into a definitive agreement to acquire EZLynx. This transaction will bring together Applied Systems, a leading global provider of insurance software, with EZLynx, a pioneer in real-time comparative rating and one of the fastest growing agency management systems. This complementary acquisition will expand Applied’s portfolio of agency management system and rating technologies to support automation for agencies of all sizes while also increasing connectivity across the distribution channel to create greater value for all stakeholders.
Q: Why did Applied acquire EZLynx? How will this benefit the insurance industry?
A: Start-up and smaller, fast-growing independent insurance agencies are on the rise, with the high regeneration factor of new agencies creating a growing segment of the marketplace that can benefit from investment in technology and automation. This segment has historically been a small portion of Applied’s overall business for which our digital solutions typically exceed their current needs. Additionally, agencies and insurers are investing in technologies that lower cycle time and reduce costs on low-margin transactions, increasing the appetite for greater connectivity to automate these processes.
Applied’s acquisition of EZLynx will expand agency choice of management systems that provide the capabilities to support their unique business model needs. Additionally, Applied will integrate EZLynx’s industry-leading real-time comparative personal lines rating technology with Applied’s portfolio of products, including Applied Epic, creating a “better together” user experience between the applications while giving agencies even greater access to personal lines products. Over time, the combined companies will evaluate opportunities to integrate Applied’s extended digital agency solutions with EZLynx’s agency management system to create greater automation and connectivity for the smaller, fast-growing, personal lines-focused agency segment that values all-in-one technology solutions.
Additionally, EZLynx’s people have a strong track record of customer loyalty, product and cultural innovation and an ability to leverage global engineering capabilities, all of which will support Applied’s innovation mission.
Q: How will this benefit EZLynx and Applied Systems customers?
A: EZLynx’s customers and partners will experience no impact to their primary services, support, and sales contacts. We believe the combination of Applied and EZLynx will provide significant benefits and greater choice to both companies’ customers, partners, and other stakeholders in the industry. Applied is committed to investing behind the combined teams to drive continued product innovation and deliver the highest level of value to our customers and partners. Our customers will greatly benefit from expanded choice of management system technology and tighter integration of EZLynx’s personal lines real-time comparative rating technology and Applied’s digital agency solution.
Applied will continue to support and grow EZLynx’s relationship with Market Access Providers/Aggregators and integration with non-Applied broker management solutions in the marketplace.
You can read the full press release here.