Simply Business secures funding to complete management buy-out
Private equity loan from AnaCap set to accelerate growth for the insurance broker
Business insurance broker, Simply Business has announced it has completed a management buy-out separating it from the Brit Group after receiving funding from private equity firm, AnaCap Financial Partners.
Founded in 2005 by parent company Xbridge, the broker specialises in providing online business insurance to the small business market.
Now that previous shareholder Brit Insurance has disposed of its 37% stake the buy-out is set to provide the online broker with greater opportunities for growth and innovation in an industry worth an estimated £3bn a year.
The deal, led by Simply Business CEO Jason Stockwood, will also see co-managing partners of AnaCap, Peter Cartwright and Ben Hollowood join its board of directors.
Stockwood, who joined the insurance broker in 2010, will remain with the business to build on its recent success having achieved turnover figures of £22.9m for 2012 with a client base of over 225,000 UK companies.
Stockwood commented: “We have laid down the gauntlet to the commercial insurance industry in recent years, combining home-grown infrastructure and innovative products to place the customer at the heart of the business.
“The management buy-out enables us to build on this success, accelerating our growth aspirations and vision for the future, while continuing to innovate and challenge the traditional industry model.”
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New board member, Cartwright added: “This is a rare opportunity to support the management buy-out of a clear market leader in a fast-growing niche of the insurance industry.
“The management and staff have done an outstanding job of growing Simply Business over the past eight years and we look forward to working with Jason and his team to meet and exceed their ambitious plans for the future.”