WMC IT Solutions AG with new owner Vierwald Software AG

On 13 December 2024, Vierwald Software AG acquired the majority of shares in WMC IT Solution AG in Reinach (BL). The company specialises in the sustainable continuation and development of small software companies. With around 2,600 users, WMC’s ‘BrokerStar’ is one of the market leaders in software solutions for insurance brokers in Switzerland. With the takeover, WMC is passing into new hands, but will continue to rely on the experience of Guido Markowitsch and his team in the future.

thebrokernews talks to Guido Markowitsch of WMC IT Solutions AG and Peter Nessensohn, CEO of Vierwald Software AG, about the reasons for the takeover.

You have been looking for a successor for your software company, founded in 1981, for some time. How did the sale to Vierwald Software AG come about?

Guido Markowitsch (GM): I would call it a ‘lucky shot’. We got on really well from the outset and had some great discussions. I am convinced that experts Peter Nessensohn and Julius Janda will give WMC a big boost. Our stated goal was to become the market leader in this industry, and with Vierwald we will achieve this goal.

Vierwald Software AG now consists of seven independent companies – and all without bank debt. How is that possible?

Peter Nessensohn (PN): First of all, we established the Vierwald company together with Michael Schuler, the founder of Moneyhouse, who has the necessary capital available due to the sale of Moneyhouse ten years ago. He is the Chairman of the Board and Julius and I are members.

Anyone who acquires companies with the help of bank debt is forced to quickly show a profit in order to service the debt repayments. We, on the other hand, can think long-term and continue to invest in product development – we really like that.

Why will you continue to serve as managing director and, in the long term, as a member of the board of directors and advisor to WMC IT Solutions despite the sale?

GM: I am now ‘only’ CEO of WMC IT Solutions and have a great deal of experience and knowledge and have made many contacts over the years. My goal is to introduce Peter and Julius to our industry together with the team. It’s not that easy to maintain a network of relationships, so we will use important events, such as the SIBA general meeting, to make contacts and Peter will attend these events to strengthen relationships.

PN: Exactly! As you can see, we have just updated the website. In collaboration with Thomas Bürki, who has been with us for many years, we also support Guido and the team with tasks that are often forgotten in the day-to-day, but are important for progress. An external perspective always brings fresh ideas and opportunities.

Thanks to our now seven software companies, we benefit from information synergies by adopting best practices and learning from each other. These best practices strengthen our company and help us to grow strategically.

How did you meet?

PN: When I’m bored, I look at industries. Quite by accident. Then I create a report and analyse them and look for the market leader. And that was Guido and WMC in this case. I wrote to him and we met for 2-3 hours. It quickly became clear to us that we would come to an agreement.

My research from the outside looking in at the industry leader revealed a sustainable product and a business model that we could continue for years to come. So it’s always the case that we are looking for suitable software companies and don’t want to buy companies that are just ‘dressing up’ for us.

Vierwald is located in Rotkreuz. Will the site remain in Reinach and will you be taking on all the employees?

PN: We chose the location because Michael is at home there. Julius lives in Zurich and I live in Munich and work a lot from home, but I also travel a lot. In the last two months I have driven 20,000 kilometres.

The Reinach location and the name will remain.

Will you continue to be in your office in Reinach every day?

GM: Of course I want to take it a bit easier, but at the moment I’m still working 10 to 11 hours a day. In the future, I’ll definitely help out in sales.

How long has Vierwald been around and what are your plans?

We took over the first company in 2023, and Vierwald Software AG was founded in April 2024. We want to continue to buy software companies and run them in the long term. We are not interested in buying and optimising companies in order to then sell them at a profit. Our goal is to expand our company with a focus on specialised software. Like other international companies, we want to continue to do this and grow over the next 50 or 60 years.

So far, your commitment has been to the DACH region, but do you also want to grow beyond that?

PN: We are focusing on the three countries you mentioned, because we have personal relationships here and we understand the culture of the people.

You won’t believe it, but when we bought WMC, not even our lawyer was present. I negotiated the contract with Guido and his lawyer. You can only do that with people you trust and who still honour a handshake.

How did the employees react to the sale?

GM: I can only say: ‘Great!’ It may sound a bit corny, but everyone is of one mind. We had already negotiated with a few companies before, but we had to refrain from selling. So the employees were a little worried about where the journey was headed. But since the sale to Vierwald, things have been going extremely well.

PN: It was unusual for us that Guido introduced himself to our employees before the sale, which resolved the tension and uncertainty for both sides. Normally, a huge secret is made about the new buyer.

What changes will there be for the many users of BrokerStar?

PN: There will be no fundamental changes. The product, the interaction with the insurance brokers and all existing structures will remain in place. In the future, new modules and products will probably be developed and launched. We have written to all customers and promised them that WMC will continue to be run in exactly the same way as it has been in the past.

GM: The industry is relatively volatile. There are legislators, regulators, insurance companies and the EcoHub, to name a few. Our aim has always been to meet all the requirements of the legislator and the regulator at all times and to comply with all industry standards. That is why we are the only software manufacturer to be a shareholder in EcoHub AG.

We are already developing today what will have to be implemented tomorrow. Like mobile phone cases, which are already available when a new phone is launched. As an early adopter, we can implement new technologies very quickly because they have already been developed. We work for the brokers of the future.

In your opinion, what are the biggest problems that brokers face?

GM: Data is key. Even today, data is still entered into cumbersome Excel spreadsheets and sent that way. However, brokers can, for example, log in to the broker portals released by insurers, but they are not allowed to access them with their own programmes. That is why we are looking for complementary services from partners that extend the process chain. The prime example is the Sobrado tendering platform, where the data is synchronised reciprocally with BrokerStar. This means that all the industry details are defined in a tender.

A good broker holds regular annual reviews with his clients, during which he assesses the risk, lists the coverages that are in place and explains any new requirements. Imagine that these reports are still being created in Word. That means up to two or three weeks of work for the manager of the mandate. But if all this data were stored in the system, all that would need to be done is to make a few additions and press a button, and the job would be done.

I’m surprised at how antiquated the work still is. You would think that customers would realise that BrokerStar can save a lot of time and therefore just as much money in their case.

GM: You would think so, but there are still customers for whom a few hundred francs per user per year is too expensive. They cannot be convinced that they can still save money and also offer better customer service.

PN: I believe that in the future we will convince people of the great added value and communicate it even better. After all, many people are unaware of all the things that can be done with the programme.

Last year, WMC successfully held a Broker Security Forum. Will there be a forum this year as well?

GM: I don’t yet know whether it will be on the topic of ‘security’ again. But there will definitely be a forum sometime in the second half of the year.

Also read: Broker Security Forum 24: Cybersecurity in the insurance industry