The MBO means CISG will be better placed to grow its operations on the high street and support extending its product range, accessibility and investment in technology, according to Insurance Times. It is not clear where the new high street offices will be located.
The debt package between Livingstone and Coversure was advised by Livingstone’s business services and debt advisory teams and was secured in an auction process. The deal is set to complete later this year, subject to regulatory approval.
The deal means Livingbridge will acquire insurance broker franchise Coversure, Policyfast, underwriters CUL and software house Datamatters.
Coversure has 90 UK offices and delivered a gross written premium of £116 million in the year ending March 2018.
The former head of corporate risk and chief executive of insurance firm Willis International, Tim Wright will join as non-executive chairman at Coversure as part of the deal.
Coversure’s CEO Bob Darling said, ‘(The MBO) will enable us to explore new opportunities and give us the impetus we need to accelerate our growth, both on and off the high street. All our stakeholders, brokers and staff can look forward to an exciting period of growth and development that I feel will be to the benefit of all.’
Xavier Woodward, who will be joining Coversure as a non-executive director from Livingbridge, commented; ‘Livingstone provided us with pragmatic and insightful advice throughout the bid process and sourced the optimal debt package within a very tight timescale.’
James Lever, partner at Livingstone, commented, ‘We believe that the support of Livingbridge for Coversure will provide a strong platform for the business as it moves to its next stage of development.’