Claims firm Davies Group has set its sights on international expansion after a major investment from US private equity firm HGGC.
The deal for Davies group is reported to be worth £90 million and marks a significant profit for previous owner, private equity group Epiris. The firm bought into Davies Group as part of a £61 million investment back in 2011. At that time, Electra Private Equity, a client of Epiris, poured in £38 million for a 57% stake, while estimating its investment during ownership at a further £5 million. Now, with the company being sold, the equity fund has recouped £45 million – noting a significant profit.
“We have a fantastic team here at Davies, and this investment from HGGC is a testament to their performance and delivery,” said Dan Saulter, CEO of Davies Group. “We operate in a vibrant and ever-changing insurance market. We will continue to invest in service, technology and new capabilities to help our clients grow their businesses and provide great service to their customers. I am grateful for the support that Epiris has provided to Davies over the past five years, and I very much look forward to working with the team at HGGC.”
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Davies Group has enjoyed notable growth over the last four years, completing seven bolt-on deals that the firm claims has added technical expertise to its broker, MGA, insurer and corporate client base.
Going forward it is expected that the company will look to target new segments of the insurance services and specialty BPO markets, and overseas expansion for its claims business.
“This is not your ordinary third party insurance administrator,” said Rich Lawson, co-founder and CEO of HGGC. “Davies is at the forefront of innovative services within its industry and invests heavily in new technology—such as sophisticated workflow and analytics—that keep them ahead of the pack in the £1.5-billion UK & Ireland claims outsourcing market. They are leading the way in new applications like telematics, drones, and mobile imaging for advanced claims management. We are very excited to partner with Davies to build on their success through organic growth and strategic acquisitions.”
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