Patriot National Makes New Stock Offering

Patriot is offering $55 million of its common stock and the selling stockholders named in its SEC registration statement are offering $25 million of common stock.

(Patriot National was listed on the NYSE on Jan. 16, 2015. Photo credit: Urban~commonswiki.)

Patriot National has announced a new public offering of up to $92 million of its common stock. The insurance technology and outsourcing vendor made its initial public offering in Jan. 2015, from which it raised $98.2 million. Patriot was listed on the New York Stock Exchange on Jan. 16, 2015.

Patriot is offering $55 million of its common stock and the selling stockholders named in its SEC registration statement are offering $25 million of common stock. To the extent that the underwriters sell more than $80 million of common stock, the underwriters may also purchase up to an additional $12 million of common stock within 30 days from the date of the offering.

(Related: Missouri Employers Mutual Chooses Patriot Technology Solutions’ InsuranceExpert SaaS Suite)

Patriot reports that it plans to use the net proceeds from the offering to finance its growth plans including future acquisitions, for working capital and other general corporate purposes, and to repay all outstanding amounts under its revolving credit facility, which were $10.8 million of outstanding principal amount as of September 30, 2015.

Since its IPO, Patriot has acquires 16 companies, including core system vendor Vikaran Solutions (now Patriot Technology Solutions). The following is a full list of Patriot’s acquistions and  their closing dates:

  • Phoenix Risk Management: workers’ compensation (WC) general agency, Jan. 31, 2015
  • DecisionUR: automated utilization review, Feb. 5, 2015
  • Capital & Guaranty: Subrogation, Feb. 9, 2015
  • Trigen Insurance Solutions: commercial lines agency March 31, 2015
  • Hospitality Supportive Services: commercial lines agency, April 1, 2015
  • Selective Risk Management: legal investigation, April 1, 2015
  • Vikaran Technology Solutions: core insurance system vendor, April 17, 2015
  • Corporate Claims Management: commercial lines claims administration, April 24, 2015
  • Candid Investigation Services: field investigation, May 8, 2015
  • Brandywine Insurance Advisors: commercial lines agency, May 26, 2015
  • Infinity Insurance Solutions: auditing and survey agency, June 3, 2015
  • InsureLinx: WC systems vendor, June 18, 2015
  • CWIBenefits: benefits administration, July 8, 2015
  • GHRR: pre-employment services, August 25, 2015
  • RCA Group: program administration, August 19, 2015
  • Carman Corp, insurance agency (closing date n/a)

Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at [email protected] or (503) 936-2803.

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