Davies seeks more acquisitions after Direct Group claims deal
Insurance service provider Davies Group is ready for further acquisitions in 2019, CEO Dan Saulter told Baden-Baden Today, after revealing the purchase of the Direct Group claims business for £36 million.
In mid-October 2018 Davies Group informed the market that it was acquiring the claims business of Ardonagh-owned Direct Group while signing a long-term claims management deal with the UK-based insurance intermediary.
The deal marks Davies’ third transaction of 2018, after it added insurance services and captive management capability through the acquisition of JMD, Requiem and Quest in January this year; and most recently adding Ember, a leading customer experience consulting and digital solutions business.
“We have to deliver organically across our business, but I wouldn’t rule out doing more deals in 2019,” Saulter said.
“We have a great pipeline and we are seen as a place where businesses can thrive. We are big on investment in research and development, and in people,” he added.
In the financial year ended June 30, 2018, Davies expanded revenues organically by 11 percent year on year. Overall, revenue increased by 41 percent year on year to £77.7 million over the period while earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew by 47 percent to £15.4 million.
The acquisitions will contribute to further growth in the years ahead, the company noted when presenting the results.
Saulter believes the market is converging around insurance verticals and is seeking acquisitions as a way to expand its offerings to clients. Davies has added insurance services to what was initially a claims business, followed by the addition of customer solutions and customer experience to the group.
