Travelers buys UK broker Simply Business for $490m
US property/casualty insurer Travelers is acquiring UK-based small and medium-sized enterprises (SME) insurance broker Simply Business from previous owner Aquiline Capital Partners for approximately $490 million.
The New York-based private equity firm Aquiline had purchased the broker in April 2016 from AnaCap Financial Partners.
Travelers said that the deal is part of the company’s strategy to advance its digital agenda. Following the transaction, which is expected to close in the third quarter of 2017, Simply Business will operate as a standalone business under its own brand name.
"As an important part of that agenda, we look forward to working with our agent and broker partners as we seek to deploy Simply Business’ capabilities with them to make the small commercial insurance transaction easier, faster and more efficient," said Alan Schnitzer, CEO of Travelers.
"Simply Business is a profitable and growing technology company with impressive strategic digital capabilities, leading digital commerce talent and proven small business insurance expertise."
Greg Toczydlowski, executive vice president and president of business insurance at Travelers, said: "We are very pleased to be partnering with Simply Business, a dynamic and innovative company that has recently established early stage operations in the United States.
"Over time, we expect it will provide us with efficient access to serve the substantial microbusiness market in the United States and potentially other geographies."
Simply Business was established in 2005 as a digital SME insurance distributor, led by CEO Jason Stockwood.
Stockwood said: "This is a tremendous opportunity for our company and employees, as well as a strong validation of our business model. I am excited about Simply Business benefiting from Travelers’ extensive knowledge of the US market as we develop our approach there, as well as the resources it has to support potential expansion into additional markets. Our shared values and commitment to innovation make this transaction a perfect fit."
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