Davies said Monday it agreed to acquire SCM Insurance Services, a claims processing and risk solutions company based in Toronto.
Terms of the transaction were not disclosed.
Davies will acquire SCM’s three operating businesses: ClaimsPro, a claims adjusting company; IPG, a third-party claims administrator; and Pario, a forensic engineering and consulting business.
SCM CEO Bob Fitzgerald and more than 1,500 employees in Canada and the U.S. will join Davies in the deal.
Davies will have annual revenues of $1.4 billion Canadian ($1 billion), with approximately 9,500 employees operating in 22 countries across Europe, North America, South America, Asia and Australasia once the deal is completed.
The addition of ClaimsPro, IPG and Pario will strengthen Davies’ existing risk management, TPA and end-to-end claims services across North America, providing specialized services for insurers, brokers, MGAs, Lloyd’s syndicates, corporates, the public sector and captive owners, Davies said.
SCM’s existing institutional shareholders, Warburg Pincus and TorQuest Partners, will reinvest part of their proceeds and become minority shareholders in Davies.
Davies’ existing institutional shareholders are BC Partners, AIMCo and JGGC. BC Partners took a majority stake in Davies in 2021.
“The deal will allow us to unlock significant growth opportunities, on both sides of the ledger; with SCM clients benefiting 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,” Davies Group CEO Dan Saulter said in a statement.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.