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Sovereign backs MBO of insurance brokerage Arachas

Sovereign Capital is to back the management buy-out of Arachas Corporate Brokers, an insurance brokerage operating in Ireland.

Sovereign will work with the management team to further grow and develop the business through a strategy of buy and build.
 
The transaction is subject to approval from the Central Bank of Ireland.
 
Established in 2004, Arachas is a corporate, SME and affinity scheme brokerage delivering exclusive insurance facilities and financial planning services to the Irish business community.
 
The business, which employs over 130 people in its offices in Dublin, Cork and Waterford, will continue to be led by CEO Donal Cronin and supported by his management team.
 
Cronin says: “We are delighted to be backed by Sovereign as Arachas begins this exciting new phase in its development. We have always prided ourselves in understanding our customers’ specific insurance requirements and formulating high quality propositions. With the backing of Sovereign we look forward to growing our business further, through a combination of organic growth and bolt-on acquisitions.”
 
Neil Cox, partner, Sovereign Capital, says: “We are very pleased to be backing Donal and his first class management team in this highly attractive and interesting market. The business has shown strong growth over the 12 years since it was established and we welcome the opportunity to partner with Donal and his team as the business pursues multiple growth opportunities over the coming months and years.”
 
Other businesses backed by Sovereign in the financial services and insurance sectors include Kindertons and Cordium.
 
Kindertons is a provider of outsourced accident management services for motor insurers and insurance brokers; since being backed by Sovereign revenues have doubled to over GBP100 million.
 
Cordium, the global fund services business, made seven acquisitions during Sovereign’s ownership and grew to become one of the largest regulatory compliance consultancies in the world.
 
Debt to support the transaction was provided by Five Arrows Direct Lending (Rothschild).

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