Davies Group, controlled by BC Partners, has entered into an agreement to acquire Canadian risk management company SCM Insurance Services. This is reported in a press release from Davies.
As part of the deal, SCM Warburg Pincus and TorQuest will receive minority stakes in Davies along with Alberta Investment Management Corp., HGGC and company employees. At the same time, BC Partners will retain a controlling stake.
Financial terms of the deal were not disclosed, but the value of the combined business is estimated at 3.25 billion pounds ($4.3 billion), including debt obligations. After the deal, Davies' annual revenue will amount to $1.4 billion, and the staff will increase to 9.5 thousand people with offices in 22 countries in Europe, North and South America, Asia and Australia.
The deal with SCM is Davies' largest acquisition to date and is aimed at expanding the company's presence in Canada and the United States.
BC Partners, which has assets worth 40 billion euros ($45 billion), took control of Davies in a deal worth 1.2 billion pounds, including debt obligations, in 2021 and has returned 17 billion euros to partners and co-investors over the past two years. In addition, BC Partners has raised 1.8 billion euros for a new flagship fund, which could have a total value of 5-6 billion euros.
Davies Group is a British insurance broker and provider of claims processing, risk management and value chain services in the segment of loss settlement, residential real estate insurance, operational efficiency improvement and customer service. The headquarters is located in Stoke-on-Trent (England).
BC Partners LLP is a British multinational investment company in the field of private equity, lending and real estate. The headquarters is located in London (England) with offices in Paris (France), Hamburg (Germany) and New York (USA).
SCM Insurance Services is a Canadian independent claims management service provider. The headquarters is located in Edmonton, Canada. SCM includes subsidiaries ClaimsPro, IPG, Xpera and Pario Engineering.
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