On January 23, HGGC announced that it will sell a minority stake in Davies Group Ltd. to Alberta Investment Management Corp.
This selling of a minority stake in the company is projected to benefit all parties involved.
Davies Group Ltd. is a tech-enabled operations management, consulting and digital solutions provider based in London. Davies is a specialist operations, consulting and digital solutions partner for organizations in highly regulated markets. These markets include insurance, financial services, utilities, and communications. They also serve regulatory bodies and other businesses around the globe. Davies’ services include: claims solutions, insurance services, and customer solutions. They have officials around the world including in Ireland and Bermuda.
HGGC is a leading, middle-market private equity firm that invested in Davies Group Ltd. back in 2017. Alberta Investment Management Corp. is one of Canada’s largest institutional investment fund managers. With all three of these entities working together, Davies Group Ltd. is projected to continue to grow, as it has done so in the recent past.
HGGC’s philosophy centers around providing platforms the ability to grow from added resources and value. HGGC has a collaborative approach to ownership, which they have implemented with Davies. This collaborative approach has helped Davies grow insurmountable over the last two years.
Since HGGC’s original investment in 2017, Davies has acquired and integrated 11 businesses, into its platform. They also were able to invest in new technology in order to improve client value and operational efficiencies. In under two years, Davies has doubled their annual revenue, reaching $150 million.
Since HGGC’s investment, Davies has added 100 new accounts and new clients. Those 100 new accounts are on top of 400 global clients who Davies has helped create transformational solutions for, especially in the use of technology. These technology-led solutions include the use of video, drones, and robotics. Since 2017, Davies has acquired several business as well including: Cynergie, CMSL, Ambant, ServiceTick, TLSS, R&Q’s insurance services business, Ember, Direct Group’s claims businesses, Veriphy, USA Risk Group and TMS.
With HGGC’s new deal with Alberta Investment Management Corp, HGGC will still maintain the majority stake in Davies. However, this deal will help everyone involved. Davies is currently focused on continuing growth the growth and expansion that they have experienced in the last two year, and this new investment with AIMCo will help them achieve this goal.
AIMCo specializes in diversifying and strengthening companies, a skill-set which will bring added value and growth to the company as a whole. AIMCo also places an added focus on investing internationally in order to help their clients. According to AIMCo, their core values include: humility, excellence, integrity, collaboration, and transparency. Through these values, they will help Davies respond to an ever-changing marketplace and place them as a leader in their field.
This partnership with AIMCo will continue to help grow Davies, and it will continue to be a source of long-term capital and will help Davies become a leader in operations.
On a statement on Davies’ website, Group CEO Dan Saulter stated, “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.”
The transaction is expected to close in Q2 of 2019. It is subject to receipt of customary regulatory approvals. Financial terms have not been announced yet.