Aquiline sells Simply Business to Travelers in $490m deal

Kenny Wastell
14 March 2017

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Aquiline Capital Partners has sold British online insurance broker Simply Business to listed US trade buyer The Travelers Companies for an enterprise value of $490m.

At current exchange rates, the deal values the business at around £400m, 3.3x the £120m EV at which Simply Business was acquired by Aquiline in April 2016.

A person close to the deal told unquote" the vendor was not actively looking to divest the asset but was preemptively approached by Travelers on an off-market basis.

The deal also represents around 50x Simply Business's 2016 EBITDA of £8m, according to the Financial Times.

In the 11 months since Aquiline acquired the company, Simply Business has expanded into the US with the opening of a Boston office, marking its first foray beyond the UK market. The business appointed its former chief operating officer, Chris Slater, as its US managing director.

Simply Business has also invested in new office space in London and refurbished its Northampton contact centre in order to support its expansion plans. In early December it announced its intention to increase its headcount from 330 to 550 by the end of 2017.

According to a statement issued by Travelers, insurance premiums placed by Simply Business have grown at an annual compound rate of 17.5% over the past three years, reaching £93m in 2016.

The sale to Travelers is subject to regulatory approval and is expected to complete in the third quarter of 2017.

A spokesperson for Aquiline declined to comment on returns or provide additional financial details related to the company.

Previous funding
Simply Business first received private equity backing in July 2013, when AnaCap Financial Partners backed the company's £50m MBO in a deal that saw the company's founder Brad Liebmann sell his 30% stake.

AnaCap then sold its stake in the company to Aquiline in a deal reportedly valued at £120m, with the vendor reaping a 4.5x return.

Company
Founded in 2005 and headquartered in London, Simply Business is an online insurance broker for SMEs. The business generated a pre-tax profit of £5m in 2015, according to publicly available documents.

People
Simply Business – Jason Stockwood (CEO).
Travelers – Alan Schnitzer (CEO).

Advisers
Acquirer – Skadden Arps Slate Meagher & Flom (legal).