Sovereign's Arachas to acquire Capital Cover

The deal is the first bolt-on for Arachas since Sovereign backed the management buyout of the firm in February 2017. According to a statement, the company intends to pursue further acquisitions.

Following the deal, the consolidated group will have a headcount of 200 across three offices in Dublin, Cork and Waterford.

The transaction is subject to regulatory approval from the Central Bank of Ireland.

Sovereign is invested in Arachas via its fourth buyout fund, which closed on its £395m hard-cap in August 2014 and makes equity investments of up to £50m.

The GP has a track record of investing in the insurance space, having acquired Dudley-based Kindertons in October 2013 and London-based Cordium (at the time known as IMS Consulting Group) in November 2010. The GP sold Cordium in a secondary buyout to European Capital in December 2014, reaping 4x money.

Company
Founded in 2006, Dublin-headquartered Capital Cover is an insurance brokerage group comprising three brands: Capital Insurance Brokers, Capital Insurance Markets and Brennan Insurances.

People
Sovereign Capital – Neil Cox (partner).
Arachas Corporate Brokers - Donal Cronin (CEO).
Capital Cover - David Lynch (managing director).

Advisers
Equity - AIB Corporate Finance (corporate finance).

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• Topics
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• Build-up