BC Partners invests in Davies to support global expansion and digital transformation

LONDON, UK – 16th March 2021 – Funds advised by BC Partners, a leading international investment firm, have announced today that they 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.

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, said: “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 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.”

James Ridout, Director of AIMCo added: “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 added: “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.

Davies expands Life & Health claims capabilities in the US with acquisition of Disability Management Services, Inc.

LONDON, UK – 7 January 2021 – Davies, the leading specialist professional services and technology business, serving the insurance and wider highly regulated markets, today announces the acquisition of Disability Management Services, Inc. (“DMS”), the Massachusetts, US based disability claims and insurance services third party administrator (“TPA”). DMS provides claims, policy administration and consulting services to the disability insurance market.

Earlier this year Davies deepened its claims administration offering to include long-term care solutions through the acquisition of TriPlus, which joined the firm’s existing Claims Solutions US arm. The acquisition of DMS further broadens Davies’ offering into the Life and Health insurance space, adding disability insurance domain expertise, along with 180 new specialist colleagues, who all join Davies.

The additions of TriPlus and DMS together establishes Davies as a leader in life & health claims administration in the US.  DMS COO Steve Miller will replace current CEO and founder Bob Bonsall who will retire upon completion of the transaction.  Miller will report to Davies’ US Life & Health CEO, Peter Lucas.

Davies has established and expanded its operations in the US through a combination of strong organic and M&A growth, with the firm now boasting claims capability spanning both the Property & Casualty and the Life & Health insurance markets.  Davies’ offering in the US includes a full range of TPA and loss adjusting solutions across all 50 states, as well as captive management and auditing solutions.

Globally, Davies has more than 4,000 colleagues, with operating centres across the UK, Ireland, Bermuda, the US and Canada.  The business delivers professional services and technology solutions across the risk and insurance value chain, including excellence in claims, underwriting, distribution, regulation, customer experience, human capital, digital transformation & change management.

Dan Saulter, Group CEO, Davies commented: “It’s exciting that we have been able to bring DMS and Davies together and I am delighted to welcome DMS’ leadership team, along with the company’s broader workforce to our business. Building our Life & Health claims capability in the US is a strategic focus and a growing market.  DMS has an excellent reputation, with strong client relationships, and an ethos for great service delivery, all of which provides for close alignment with TriPlus and our wider Davies operations.”

He added: “Looking to 2021, our US and Bermuda operations now represent around a quarter of our global operations.  Investing in the US remains a core part of our growth strategy.  We will continue to push for organic growth, as well as working with like-minded businesses via M&A to ensure we can deliver for our 750+ global insurance and highly regulated clients.”

Bob Bonsall, DMS added: “I am very pleased that DMS is joining forces with an organization that is committed to growth and innovation in the Life & Health insurance market in the US.  Davies’ history of investing in people and technology, along with a commitment to always put the interests of clients first, aligns well with the values upon which DMS has been built.  The cultural fit with Davies was an important factor as we planned for our company’s future and I believe the combination with Davies will present DMS employees more career development opportunities and an exciting future as the company continues to grow.”