Funds advised by BC Partners, an international investment firm, are to to acquire a majority stake in Davies, a specialist professional services and technology business serving the global insurance market.
The terms of the transaction have not been disclosed.
Davies delivers professional services and technology solutions across the risk and insurance value chain, including claims, underwriting, distribution, regulation, customer experience, human capital, digital transformation and change management. It currently employs over 4,000 people supporting more than 800 clients around the world, and in recent years has expanded into new markets including Bermuda, Canada and the US. Through a combination of organic growth and strategic acquisitions, the firm has increased its annual pro-forma revenues six-fold over the last four years, to more than GBP350 million and Davies has been recognised as one of the UK’s fastest growing international businesses for two consecutive years.
This new partnership will diversify and strengthen Davies’ shareholder base, as it seeks to drive further global expansion, increase investment in technology and digital transformation, and to continue to partner with complementary businesses via M&A. Existing investors HGGC and AIMCo will continue to hold minority ownership stakes in the business, alongside the Davies leadership team and employees. BC Partners will also have representation on the Board.
Cédric Dubourdieu, Partner at BC Partners, says: “We at BC have been watching Davies’ progression over the past few years with keen interest, as this was a business we knew had serious potential. Over this period it has expanded geographically, successfully entering and establishing a presence in the US, Canadian and Bermudian markets, completed more than 30 acquisitions, diversified its service offering and cemented its position as a clear leader in its sector – all whilst upholding its reputation for providing excellent service to its customers.”
“We’re very excited about the opportunity to work with Dan and the broader Davies team to build on this momentum, using our global network and sector expertise to support further growth through technology-enabled transformation and further penetration into the US and European markets.”
Dan Saulter, Group CEO of Davies, says: “We are excited to welcome BC Partners as a majority investor as we embark on this next phase of international growth and technology investment. I am also pleased that both HGGC and AIMCo wish to continue to invest in Davies alongside BC Partners. I am proud of what the team has achieved, and this transaction will mean that our employee ownership programme, the Davies Incentive Plan, will pay out to eligible colleagues for a second time, reflecting the huge role they play every day in serving our 800+ insurance and highly regulated clients around the world.”
James Ridout, Director of AIMCo adds: “It’s been great to partner with Dan and the team at Davies since 2019, during which time they have tripled the size of the business, added legal solutions to the platform, and launched claims solutions in the US. As long-term investors, on behalf of our clients, AIMCo is thrilled to be continuing to back the team, and we look forward to supporting the next phase of growth and digital transformation.”
John Block, Partner of HGGC, comments: “The amazing growth Davies has achieved since our initial investment in 2017 has been inspiring to see. Dan and the leadership team’s commitment to maintaining a culture of accountability and transparency with a focus on value creation provides a great foundation for continual business expansion. Following our partnership model, we look forward to an ongoing role in Davies’ success alongside BC Partners and AIMCo.”
The BC Funds were advised by Waller Helms Advisors and Macquarie Capital (financial advisers), Linklaters LLP (legal adviser) and PwC (commercial, financial and tax adviser).
Management were advised by Liberty Corporate Finance (financial advisers) and Osborne Clarke (legal advisers).
HGGC was advised by Kirkland & Ellis (legal advisors) and AIMCo was advised by Allen & Overy (legal advisors).
The transaction is subject to receipt of customary regulatory approvals and is expected to close during the second quarter of 2021.
