TLDR:
- Insight Partners and JVP acquire $120M worth of Earnix shares in a secondary share deal.
- The deal valued at about $120-$130 million with IGP selling shares for approximately $70 million and Vintage selling shares for about $50-$60 million.
In a recent secondary share deal, Israeli venture capital funds, Vintage Investment Partners, and Israel Growth Partners sold their entire holdings in the fintech unicorn Earnix to JVP and Insight Partners. The deal, valued at approximately $120-$130 million, saw IGP selling shares for around $70 million and Vintage selling shares for about $50-$60 million. The transaction took place at a valuation lower than the company’s last fundraising round in 2021 when Earnix raised $75 million at a valuation of $1 billion, becoming a unicorn for the first time.
As private investment funds typically have a lifespan of about seven years, the early investors in Earnix sold their shares as the funds had reached the end of their lifecycle and needed to return capital to investors. Secondary transactions like this have become more common in the last few years due to increased interest rates and decreased appetite for risk assets among investors. JVP, one of Earnix’s initial investors, and Insight Partners, which made its first investment in 2021, saw this as an opportunity to increase their holdings in the profitable company.
Earnix, established in 2001, presented its first operating profit in 2023 and has seen revenues cross the $100 million threshold this year. The company aims to reach hundreds of millions of dollars in annual revenues in the coming years. Earnix’s AI Dynamic Platform serves some of the largest insurance companies globally, helping them underwrite better and faster, personalize products for customers, optimize pricing, and maintain optimal contact with customers and databases. The company has clients in 35 countries, including major corporations like Generali, Toyota Finance, Tesco Bank, and US Bank.
