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Epiris disposes of insurance claims service provider for £90m

Following on from this morning’s £750m sale of car leasing firm Zenith by HgCapital, London-based Epiris has rubber-stamped another big private equity house sale after disposing of insurance claim service provider Davies Group.

The business, which provides insurance services to UK and global insurers, including the Lloyd’s market, has been sold to US private equity firm HGGC for £90m.

Electra Private Equity, the fund which is managed by Epiris, has received £45m in proceeds from the sale, which its says represents a 4% uplift on Davies valuation in September last year.

Epiris led the £61m acquisition of the insurance services firm in 2011, and has since embarked on a strategy of management change and operational improvement to help nurture and expand the business in the last six years.

Davies now manages more than 170,000 claims each year and handles over £1.2bn in annual claim cost.

Following the disposal, Alex Fortescue, Managing Partner at Epiris, commented: “We are delighted to have brought the investment in Davies to a successful conclusion. Dan and his team have done a tremendous job in transforming the business into a growing and successful TPA.”

Dan Saulter, Chief Executive Officer of Davies Group, added: “It has been great to work with Epiris to develop and transform the Davies business. It has been hard work, but I am very proud of the business that we have created with Epiris and look forward to working with HGGC to take it to the next stage.”

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