BC Partners closes in on Davies to finance its ongoing expansion
BC Partners, the international investment firm, has signed an agreement that will see it take a majority stake in Davies, the specialist professional services and technology business that opened a compliance and regulatory advisory business in Bermuda in 2019.
Davies employs over 4,000 people and supports more than 800 clients around the world. As well as expanding its operations in Bermuda, it has been expanding aggressively in Canada and the US. Since 2019 it has added legal solutions globally and claims solutions in the US.
The deal, the terms of which were not disclosed, will give BC Partners representation on the Davies board and will help finance Davies’ continued expansion plans. It will diversify and strengthen Davies shareholder base and increase investment in technology and digital transformation.
Existing investors HGGC and AIMCo will continue to hold minority ownership stakes in the business, alongside the Davies leadership team and employees.
Davies has increased its annual proforma revenues six-fold over the last 4-years, to more than £350 million, through a combination of organic growth and strategic acquisitions.
Cédric Dubourdieu, partner at BC Partners, said the group believes Davies has “serious potential”, having been monitoring developments at the firm for several years. During that time, it noted, Davies has made “30 acquisitions, diversified its service offering and cemented its position as a clear leader in its sector – all whilst upholding its reputation for providing excellent service to its customers.”
Dan Saulter, group chief executive officer of Davies, said: “This transaction will mean that our employee ownership programme, the Davies Incentive Plan, will pay out to eligible colleagues for a second time, reflecting the huge role they play every day in serving our 800+ insurance and highly regulated clients around the world.”
John Block, partner of HGGC, said: “The leadership team’s commitment to maintaining a culture of accountability and transparency with a focus on value creation provides a great foundation for continual business expansion. Following our partnership model, we look forward to an ongoing role in Davies’ success alongside BC Partners and AIMCo.”
