Canadian investor Alberta Investment Management (AIMCo) has acquired a minority stake in Davies Group.
The new partnership diversifies and strengthens the group’s shareholder base as Davies seeks to drive continued organic growth and digital transformation. HGGC will continue to hold the majority ownership stake in the business.
Davies has gone on an acquisition spree since HGGC took a majority stake in the business in 2017, completing 11 deals while delivering double-digit annual organic growth.
Over the course of 2018, Davies repositioned the business across claims solutions, insurance services and customer solutions, and added more than 100 new accounts from existing and new clients to its platform.
It also adding operations in Bermuda, the US and Canada to its established UK and Ireland bases.
Davies has more than tripled its annual investment in technology and digital transformation, including in its Cq claims administration platform, its video and drone claims handling solutions, as well as investing in robotics and machine learning.
Commenting on AIMCo’s investment, Dan Saulter, CEO of Davies Group, said: “We have ambitious plans for Davies over the next five years both in our home markets and internationally. The new investment from AIMCo is due to the excellent work and progress our team at Davies has made in recent years.”
“With support from HGGC and AIMCo we can continue to back new technologies and invest in our team of 1,700 colleagues across the business. We’re excited to welcome AIMCo as a Davies investor who we believe will be a valuable partner as we cement Davies’ place as the leading operations, consulting and digital partner in our chosen markets.”
John Block, principal at HGGC, said: “After two years of impressive growth driven by continued commitment to the ever-expanding Davies team and the great clients we serve, we are excited to bring in AIMCo as a new investor.”
“We are committed to continuing to back the investments in the team and technology as we dedicate the coming years to continued global expansion and to adding capabilities to better serve Davies growing client base.”
James Ridout, director in the private equity group at AIMCo, added: “AIMCo is excited to be partnering with Dan and his team, alongside HGGC, to support Davies in its next phase of growth. We believe the company has a strong runway ahead along with an excellent leadership team and investor partners to capitalise on growth opportunities.”