Avantia Limited / ECI Partners
Cavendish Corporate Finance, the UK’s leading sell-side mid-market M&A firm, is delighted to have advised on the MBO of the Avantia Group, the award winning financial services technology and analytics business that provides property insurance. The £57m MBO was backed by mid-market buyout specialist, ECI Partners.
Avantia, which operates the online consumer home insurance brand HomeProtect, has invested heavily in R&D, building up valuable and unique IP and capitalising on its rich and nuanced domain knowledge which allows the business to offer home insurance to many households when others consider it too difficult.
The business maintains the most effective online quote ability of any household insurer in the UK, returning a quote to over 97% of applicants, almost 25% more than its closest competitor. More than 80% of its new customers are in what other insurers would deem to be ‘difficult to insure’ risk categories.
In early 2013, Avantia hired Phillip Walter as CEO, with a mandate to grow the business and continue to invest in technology and R&D. Following Mr. Walter’s appointment, Avantia won the Transform Award and the Insurance Times Tech Award for its innovative use of data for real-time risk pricing, also placing as a finalist for the British Insurance Awards and UK Broker Awards.
Cavendish completed on the sale of 12 deals in 2013. Its previous TMT deals include: Datong plc, Redbox Recorders, Opta Sports, Primal Pictures, Lightech and Focus Solutions Group.
John Farrugia, Partner and Head of Technology at Cavendish said:
“We are delighted to have secured the sale of Avantia Group in a highly competitive process -we are confident that ECI will prove to be the ideal partner to help capitalise on its growth potential. Avantia has a unique proposition in the property insurance market and is entering an exciting stage of development.”
Phillip Walter, CEO of Avantia and HomeProtect said:
“We are delighted to be working with ECI to further grow HomeProtect and our other evolving brands. It is an exciting time for our business, our partners and our customers. HomeProtect already provides cost effective insurance for tens of thousands of customers, many of whom had found it difficult to find online cover elsewhere. This investment from ECI will allow us to grow faster organically as well as by acquisition, to offer more customers the peace of mind that HomeProtect delivers.”
David Walker, co-founder said:
“ECI have a proven track record investing in ambitious, high-growth companies. We are delighted to have them on board, as they support HomeProtect in the next stage of its expansion.”
“When looking for an advisor we decided we wanted someone who had specific experience in negotiating within the Private Equity space. It requires some additional skills to those needed in a trade sale and we were lucky to have found in Cavendish, a company that was able to help us.
We made absolutely the right choice in appointing Cavendish. Michael Jewell and the team were instrumental in getting us the deal we wanted. I would have no hesitation in recommending them to anyone thinking about a sales process.
Cavendish introduced us to GE and managed the negotiation and coordinated the transaction due diligence. Their involvement was instrumental to the deal being successful.
When looking for an advisor we decided we wanted someone who had specific experience in negotiating within the Private Equity space. It requires some additional skills to those needed in a trade sale and we were lucky to have found in Cavendish, a company that was able to help us.
This marks a significant opportunity for our partners, customers and people as we become part of the global Kyocera family and continue the journey we started back in 1988. When looking for an advisor we wanted someone with an international network and experience of working with buyers both here and overseas. Cavendish had the expertise to facilitate the transaction and the support they provided was invaluable.
The Cavendish team, led by Nick Jones, did an excellent job managing the process and ensuring the smooth closing of the transaction in a timely manner. They were always professional and aligned with our shareholder goals – many thanks to the whole team.
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