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Covenir Case Study

  • Headquarters: Worcester, MA
  • Acquisition Date: November, 2019
  • Vertical Market: Insurance & Benefits Administration
  • www.covenirbpo.com/

Background

Covenir was founded in 2015, under Insuresoft, to offer value-add services focused on insurance business process outsourcing (BPO). The company was created as a natural extension under Insuresoft, which provides software to Property and Casualty (P&C) insurers, to support the execution of its software. Covenir provides services in support of key transactional activities, such as: customer support, claim processing, underwriting, premium and payment services, sales advisors, as well as print and distribution.

Being under Volaris allows us to be a part of a larger ecosystem that provides us with strong stability, while also giving us the flexibility and autonomy needed to best service our customers.

— David Squibb, General Manager, Covenir

The Decision to Sell

Shortly after the creation of Covenir, Insuresoft funded and started new ventures Red Hawk and Kaboodle. These four companies made up Policy Processing Systems Corporation Group (PPSC) and provided a wholistic service offering to insurers. In 2019, PPSC leaders were contacted by Volaris about an acquisition, and from there the leadership team had regular and ongoing discussions.

At the time Volaris established a relationship, Covenir had seen great success and rapid growth due to strong cross-selling efforts and service bundling with the other three PPSC companies. However, leaders recognized that company initiatives were heavily self-funded, and wanted greater stability and financial resources to expand on their success. As such, company leaders were excited at the idea of being acquired by a company willing to invest in growth initiatives.

Covenir leaders were also excited about an acquirer that had a strong presence and deep experience in the insurance industry. Volaris owned several businesses in the insurance software vertical, which provided Covenir with a new distribution channel to help drive further growth. They were also excited about Volaris’ buy-and-hold philosophy and decentralized business model, which would enable all four companies to continue to grow their brands independently.

By joining the Volaris family, we have gained access to much more than capital. We’re making our combined businesses much more resilient through information sharing, collaboration and a set of common goals which make us stronger together.

— Tony Villa, Group Leader, Volaris & CEO, Insuresoft

Post-Acquisition Success

Since the acquisition, Covenir has been able to take advantage of being a part of Volaris and the network of organizations it joined. Volaris provided resources and guidance for Covenir to develop its own sales and marketing team, enabling Covenir to build and execute on its strategy. The company is continuing to grow its customer base by engaging in new service bundling opportunities with other organizations within the Insurance and Benefits vertical, including Silvervine and Travisoft.

Covenir team members have been very excited about the transition of ownership, as it provides new career development opportunities and enables additional sharing of best practices across a larger network of team members. Volaris leadership also provided strategic planning sessions for Covenir to help set short-term and long-term goals for the company. These goals have enabled the company to set out and continue to expand on the success it has been able to achieve.

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