Sedgwick Acquires Bottomline's Legal Spend Management Division
Deal News | Feb 20, 2025 | Thoma Bravo
Sedgwick, a leader in global claims management, has reached an agreement to acquire the Legal Spend Management (LSM) unit from Bottomline Technologies. This acquisition will introduce LSM’s cloud-based software and legal bill review solutions into Sedgwick's portfolio. It promises to enhance Sedgwick’s ability to manage legal expenses for clients in the property and casualty insurance industry. Pending closing conditions and regulatory approval, Sedgwick plans to manage this new addition as a separate division. This strategic acquisition aligns with Sedgwick's aim to strengthen its market position by integrating LSM's capabilities and further assisting clients in optimizing litigation decisions. Bottomline, a global business payments leader and a portfolio company of Thoma Bravo, intends to increase its focus on payments and cash management post-transaction. The move is set to shift approximately 300 LSM employees to Sedgwick. Financial and legal advisement for this transaction was provided by Morgan Stanley & Co. LLC, BofA Securities, Simpson, Thatcher & Bartlett LLP, Deutsche Bank Securities Inc., and Kirkland & Ellis LLP.
Sectors
- Insurance & Claims Management
- Legal Services & Technology
- Financial Technology
Geography
- United States – Sedgwick and Bottomline Technologies are both based in the United States, making it a relevant geography for the transaction.
Industry
- Insurance & Claims Management – The article involves Sedgwick, a company known for its services in claims management and loss adjusting.
- Legal Services & Technology – The acquisition focuses on legal spend management solutions and technology, relevant to both Sedgwick's and Bottomline's line of businesses.
- Financial Technology – Bottomline is involved in business payments and cash management, areas within the fintech industry.
Financials
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Sedgwick | Acquirer | Company | A global provider of claims management, loss adjusting, and business solutions. |
| Bottomline Technologies | Vendor | Company | A global leader in business payments and cash management, selling its Legal Spend Management division. |
| Thoma Bravo | Private Equity Owner | Company | One of the largest software-focused private equity firms, owning Bottomline Technologies. |
| Morgan Stanley & Co. LLC | Financial Advisor to Sedgwick | Company | Provided financial advice to Sedgwick during the transaction. |
| BofA Securities | Financial Advisor to Sedgwick | Company | Served as financial advisor to Sedgwick. |
| Simpson, Thatcher & Bartlett LLP | Legal Counsel to Sedgwick | Company | Provided legal counsel to Sedgwick. |
| Deutsche Bank Securities Inc. | Financial Advisor to Bottomline | Company | Advised Bottomline Technologies on the transaction. |
| Kirkland & Ellis LLP | Legal Counsel to Bottomline | Company | Provided legal services to Bottomline Technologies for the transaction. |