West Allis-based Dynamis Software Corp. has been acquired by University Park, Illinois-based Applied Systems for an undisclosed amount. The transaction closed Oct. 12.
Dynamis, which has 21 employees, makes employee benefits software used by more than 150 U.S. insurance agencies. The company, established in 2012, has raised more than $3 million in equity investments with the help of Brookfield-based Golden Angels Investors. The most recent $1.3 million round last year was used to build out its Dynamic Plan Designer software, which allows insurance brokers to offer digital plan designs that can be changed while face-to-face with the customer, automating the plan design process.
“We were really pleased,” said Tim Keane, director of Golden Angels Investors, which had about 50 of its members invested in Dynamis.
This is Golden Angels’ sixth exit, including Dynamis co-founder and chief executive officer Andy Nunemaker’s previous Milwaukee-based startup EMSystems.
“Our portfolio has got a lot of good stuff in it. Many nice entrepreneurs. And we think that we’re repeating this,” Keane said.
Applied Systems sells agency management software for insurance agencies that provides insurance automation and data exchange among brokerages, insurers and clients. In 2015, Applied launched its Epic Benefits division to expand beyond insurance into employee benefits. It plans to integrate Dynamis with its U.S. operations and provide integrated technology for employee benefits agencies. According to an Applied Systems spokeswoman, the company will retain all of Dynamis’ employees and retain the West Allis office as an Applied Systems branch. The company said customers and partners will experience no immediate impact.
Earlier this week, Applied Systems announced it had received a minority investment from Google affiliate CapitalG.
“As the insurance industry enters the digital age, we recognize an opportunity with Applied for our customers to benefit from greater technical resources and support services,” Nunemaker said. “This acquisition provides our customers with access to new innovation to further automate the plan design process, enabling agencies to more effectively advise customers of their benefit plan options and increase their competitive value.”
“At Applied, we recognize the challenges that benefits agencies face automating their business,” said Reid French, chief executive officer of Applied Systems. “This transaction brings the leading provider of agency management systems globally with Dynamis, a leading provider of employee benefits solutions in the U.S., to deliver an integrated solution for employee benefits agency automation.”
