UK-based insurance company Davies Group has agreed to acquire SCM Insurance Services, a Canadian company specialising in claims processing and risk management solutions.
The combined value of the businesses following the transaction will be £3.25bn ($4.3bn), inclusive of debt, reported Bloomberg, citing unnamed sources.
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The acquisition will see SCM’s three main divisions – ClaimsPro, IPG and Pario – joining Davies’ international operations.
ClaimsPro operates as a claims adjusting provider, IPG is a third-party administrator, and Pario focuses on forensic engineering, consultancy, and post-loss appraisal services.
Once the deal is finalised, Davies, which is controlled by BC Partners, will have annual revenues of around C$1.4bn ($1bn) and a workforce of 9,500 across 22 countries in Europe, North America, South America, Asia and Australasia.
The deal is expected to expand Davies’ service reach across Canada while also adding SCM’s US operations to Davies’ existing presence in the US.
More than 1,500 personnel from SCM in Canada and the US are set to join Davies under the agreement.
With the addition of ClaimsPro, IPG and Pario, Davies aims to strengthen its risk management and claims services in North America.
The service range will cover brokers, captive insurers, corporations, insurers, Lloyd’s syndicates, managing general agents and public sector bodies.
The transaction will also see SCM’s current institutional shareholders – Warburg Pincus and TorQuest Partners – reinvest part of their proceeds and maintain minority ownership stakes in Davies, alongside BC Partners, AIMCo and HGGC.
Davies Group CEO Dan Saulter said: “We are thrilled to have gotten this deal signed, bringing the SCM team into Davies. The business is very highly regarded in Canada, and as market leader, this puts us in the #1 spot in this growing and vibrant market.
“The deal will allow us to unlock significant growth opportunities, on both sides of the ledger; with SCM clients benefitting from our global reach and wider service offering; and with Davies clients being able to access the best claims and risk solutions teams in Canada.”
SCM Insurance CEO Bob Fitzgerald commented: “This is a fantastic opportunity for all the SCM Insurance Services brands. Our clients will now have access to Davies’ global solutions, immediately elevating our technology, AI and platform offering. I am very much looking forward to working with Dan at this exciting time.”
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Clinton Mora is a reporter for Trending Insurance News. He has previously worked for the Forbes. As a contributor to Trending Insurance News, Clinton covers emerging a wide range of property and casualty insurance related stories.