Randall & Quilter, an AIM-listed insurance service provider and acquirer of solvent insurance companies in run-off, has announced the acquisition of Bermuda-based Quest Management Services, Quest (SAC) and Sentry Intermediaries, accounting and management services firms in the captive non-life insurance sector, for US$6.9 million (£4.7 million).

Randall & Quilter, an AIM-listed insurance service provider and acquirer of solvent insurance companies in run-off, has announced the acquisition of Bermuda-based Quest Management Services, Quest (SAC) and Sentry Intermediaries, accounting and management services firms in the captive non-life insurance sector, for US$6.9 million (£4.7 million).

The deal will be funded through Randall & Quilter’s existing cash pool and is to include a further payment related to the Quest group of companies’ performance over the next 12 months.

According to the AIM-traded company, the deal is a “great opportunity to diversify its service provision geographically and functionally, and provides excellent opportunities for growth”.

The target companies generated pre-tax profit of $900,000 on revenues of $3.9 million for the year ended 31 December 2007.

Jerry McArthur, CEO of US & Bermuda Randall & Quilter, said: “This is a decisive step forward for us into the Bermudian insurance market. The acquisition now provides a service platform in each of the key insurance markets of Bermuda, the US and the UK, which will also enable Randall & Quilter to source run-off and debt acquisition opportunities and provide risk capital solutions to clients who are seeking to restructure their balance sheets across one or more of these markets.”