Applied Systems, a Chicago-area company that sells its cloud-based software to groups in the insurance industry, announced Wednesday that it has acquired Dynamis Software. West Allis, WI-based Dynamis develops software that insurance brokers and agents can use to compare the different health plans available to their customers, most of whom are employers.
A news release announcing the acquisition did not contain any financial terms. Reached by phone, Dynamis co-founder and CEO Andy Nunemaker declined to say how much his company sold for.
Dynamis has a team of 21 people, according to a page on Applied Systems’ website with details on the deal. It’s not clear whether all of them are full-time employees. Nunemaker says Dynamis’s entire team will stay on board as the startup becomes part of Applied Systems, which says it has more than 1,500 employees.
“No one is leaving,” Nunemaker says.
The two businesses have not yet determined whether some or all of Dynamis’s team members will relocate to Illinois to work from Applied Systems’ headquarters, Nunemaker says.
According to Applied Systems’s website, many of its products are geared toward insurance agents. The company’s Applied Epic software allows users to manage sales data, insurance plans, and other employee benefit information within a single software application.
Nunemaker, an Xconomist and a former GE Healthcare executive, says his company and Applied Systems have not decided whether Dynamis will maintain its name and branding, or whether it will do away with the Dynamis brand post-acquisition.
The digital tools Dynamis develops allow insurance brokers and agents to design health plans and tweak them while meeting with employers and other groups to which they sell. The software lets users do things like add health savings or reimbursement accounts to plans, or change deductible amounts. Many of the brokers that use Microsoft Excel to create models of plans can’t make on-the-fly changes to them if requested by an employer during a meeting, Nunemaker told Xconomy last year.
Applied Systems says that more than 150 insurance agencies in the U.S. use Dynamis’ Dynamic Plan Designer software, which the startup launched in 2016. Asked about the benefits of becoming part of Applied Systems, Nunemaker says, “the upside is really for our clients.”
Dynamis had raised more that $3.3 million in outside investment since launching in 2012, according to SEC filings.
