Open GI owner Montagu kicks off sale through BofA, Arma

The UK mid-market focused fund, which is working with Bank of America and Arma Partners on the sale, began circulating marketing materials last month in preparation for an exit from the Worcester-headquartered provider of insurance software to brokers, the sources said.

Open GI generates core earnings in the region of GBP 30m and could be valued at around 12x, as previously reported.

Its earnings growth has been broadly flat in recent years, two additional sources said. During Montagu's previous attempt to sell Open GI in 2018, the company was being pitched to suitors off roughly GBP 40m in pro forma EBITDA, as reported by Unquote sister publication Mergermarket at the time.

The renewed push to find a buyer for the company was first flagged in a newswire report in March.

Founded in 1979, Open GI provides a range of insurance software to brokers, underwriting agencies, insurers and MGAs (a type of wholesale broker) in the UK and Ireland that focus on personal and commercial insurance products.

Montagu acquired Open GI, then known as Open International, in 2014 as part of a management buyout, having previously owned and sold the business to insurance broker Towergate Insurance in 2007. The size of its investment in 2014 was not disclosed.

Open GI competes in the same space as London-based Acturis, which is minority-backed by Astorg Partners.

Under Montagu’s most recent ownership, Open GI has completed the acquisition of Mi, a software solutions company for brokers and insurance firms in the Lloyd’s market.

Representatives for Montagu, Open GI, Bank of America and Arma Partners all declined to comment.

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