
Sovereign-backed Arachas acquires Covercentre
Sovereign Capital Partners has acquired Dublin-based Covercentre, a wholesale insurance broker, via its insurance broker portfolio company Arachas.
The deal marks the third acquisition Arachas has made since Sovereign backed the management buyout of the business last year. The combined group is expected to employ a staff of 230 across offices in Dublin, Cork and Waterford.
The bolt-on was financed with a debt package from Rothschild's Five Arrows Direct Lending fund.
Previous funding
Sovereign backed the management buyout of Irish insurance brokerage Arachas Corporate Brokers in February 2017. The company continued to be led by CEO Donal Cronin and prepared to undertake an acquisitive growth strategy. According to a report by the Irish Independent in November last year, Arachas was aiming to reap €25m from its sale.
Sovereign 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.
Company
Headquartered in Dublin and established in 2012, Covercentre is a wholesale insurance broker that offers specialist property and commercial vehicle insurance to around 300 sub-brokers in Ireland.
People
Sovereign Capital – Neil Cox (partner).
Arachas – Conor Brennan (CEO).
Advisers
Vendor – Eversheds, Gavin O'Flaherty, Amy McDermott, Paddy O'Brien, Richard Davies, Kate Clarke (legal); Mazars, Mark Mulcahy, Paul Kane (financial due diligence); Intuitus, Nancy Moore (IT due diligence).
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