Concentrix has agreed to divest its insurance third-party administration operations and software platform (Concentrix Insurance Solutions or CIS) to Abry Partners and Hoplon Capital.

The deal leads to the formation of a new company that will be run as a standalone entity.

Abry Partners partner Brent Stone said: “This new investment falls directly within our strategy of partnering with high caliber management teams in the insurance services sector and we are thrilled to support this corporate carveout as we begin the process of positioning CIS as an independent company.

“We share management’s vision to continue the company’s growth both organically and through strategic acquisitions and look forward to our new partnership.”

Concentrix will use the deal proceeds to further invest and reinforce its position in the customer experience (CX) space.

The company said that the deal offers CIS scope for further focus and expansion.

The deal, whose financial terms were not shared, is expected to close later this month subject to regulatory nod. The company will reveal further details on the deal at completion.

Concentrix said that the transaction will not affect its financial guidance for fiscal year 2021.

Concentrix president and CEO Chris Caldwell said: “We continue to be focused on driving exceptional CX and Technology solutions that provide higher value outcomes for our clients and their customers.

“This sale will allow us to invest further resources and energy in the growth of our core end-to-end CX capabilities.”

Abry Partners is a private equity firm based in Boston, while Hoplon Capital is an asset manager focused on digital disruption.

Last month, Abry Partners agreed to acquire Michigan-based insurance brokerage High Street Insurance Partners (HSIP) for an undisclosed sum.