The investment arm of one of Richmond’s biggest corporations looked local for its second acquisition of this year.
Markel Ventures, a subsidiary of insurance giant Markel Corp., announced late Monday it has acquired CapTech Ventures, a fast-growing IT firm based in the West End.
Markel is taking on a majority stake in CapTech, according to a release, but specific terms were not disclosed.
Tom Gayner, co-CEO and chief investment officer for Markel, declined to comment beyond the announcement, which included remarks from him and CapTech founders Sandy Williamson and Slaughter Fitz-Hugh. A message left at CapTech on Tuesday was not returned.
Founded in 1997, CapTech provides IT services for both private and public companies and government agencies. The company has experienced considerable growth since, making the Inc. 5000 list of the fastest-growing U.S. companies for nine years. Between 2011 and 2012, the firm reported an annual revenue increase of nearly $20 million to $69.1 million.
Monday’s announcement did not mention any impacts to CapTech that could result from the deal. Typically, Markel Ventures acquisitions see the acquired company’s leadership remain in place to run day-to-day operations.
The acquisition is Markel’s second this year. In September, the insurer announced it was picking up Bermuda-based CATCo Investment Management, which manages reinsurance portfolios.
That deal was Markel’s second in Bermuda, where it acquired Alterra Capital Holdings in 2012 in a $3.13 billion deal.
CapTech adds to about 15 companies in Markel Ventures’ portfolio, which includes local firms PartnerMD, Diamond Healthcare and AMF Bakery Systems – its first acquisition in 2005. In 2013, it picked up the Eagle Cos. and its various construction and real estate affiliates, including Eagle Construction of VA.
Where Markel Corp.’s principal business markets and underwrites specialty insurance products, Markel Ventures generally targets controlling investments in businesses that operate outside of the specialty insurance marketplace.
Other companies in its portfolio include auto trailer manufacturer Cottrell, Netherlands-based bakery company Tromp Group, and Texas-based manufacturer Panel Specialists.
Markel landed just shy of this year’s Fortune 500 list, jumping 66 positions from the previous year to 504. Had it cracked the annual rankings, it would have become Richmond’s seventh Fortune 500 company.
Markel has also undergone a recent leadership change, replacing chief executive Alan Kirshner, who will stay on as executive chairman, with Gayner and fellow executive Richard Whitt, who are serving as co-CEOs.