Osborne Clarke has advised the management team of Davies on an investment by Funds advised by BC Partners. BC Partners, a leading international investment firm, have signed a definitive agreement to acquire a majority stake in Davies, the leading specialist professional services and technology business serving the global insurance market. Terms of the transaction were not 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 proforma revenues six-fold over the last 4-years, to more than £350 million and Davies has been recognised as one of the UK’s fastest growing international businesses for two consecutive years.
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). Osborne Clarke's team included private equity Partners Tim Hewens and Mike Freer, Associate Directors Robert Pook and Seamus McKimm and Associate James Robertson.
Tim Hewens, Partner Osborne Clarke said: "It was great to work again with the Davies team. Technology enabled professional service businesses continue to be an attractive target for private equity investment having performed well through the global pandemic. "
HGGC was advised by Kirkland & Ellis (legal advisors) and AIMCo was advised by Allen & Overy (legal advisors).
Dan Saulter, Group CEO of Davies said: “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.”
The transaction is subject to receipt of customary regulatory approvals and is expected to close during the second quarter of 2021.
As well as advising the Davies team on the investment, Osborne Clarke has advised Davies on a number of acquisitions in recent years, led by Partner Rob Wood.
Osborne Clarke's Management Advisory Group is a go-to practice for the management teams of businesses engaging in private equity transactions. One of only a handful of City firms with a team specifically focussed on supporting management teams through the complexities of completing a management buyout, the Management Advisory Group brings together the deal experience of our Private Equity team, with the support and skills of specialist tax, employment, incentives, tax and private client lawyers.