Montagu picks up Open International again

Alice Murray
19 August 2014

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Montagu Private Equity has acquired Open International, a UK supplier of insurance-focused business software, having previously bought the company in 2006.

The latest deal sees the management team of Open International, parent company of Open GI, Open GI London and PowerPlace, acquire the company from private shareholders, with support from Montagu.

Shareholders Peter Cullum, Andy Homer, Kenny Maciver, Paul Dyer and Tony Proverbs are exiting the business entirely. Furthermore, PowerPlace CEO Nick Gidding will become a shareholder in the company and take a seat on the board.

The deal sees the company's debt, held by Lloyds, being paid down on completion of the MBO.

According to unquote" sister title Insurance Age, while the size of the deal has not been disclosed, Open International's CEO Chris Guillaume said it was "more than last time", referring to the company's £267m acquisition in 2007. Guillaume also said that, following the deal, commercial lines have been identified as a 'definite growth area'.

Guillaume told Insurance Age that the company had planned to IPO this year, but after attracting attention from private equity, decided to do a buyout instead. Insurance Age also revealed that, because of Montagu's previous involvement with the company, they were able to move very quickly during this latest transaction. Read the full Insurance Age article here.

Previous investment
Montagu first acquired the company, then Misys General Insurance, in April 2006 for £182m, with debt provided by CIBC, according to unquote" data.

Just one year later the company, known at the time as Open International, was bought by insurance intermediary Towergate for £276m, marking Towergate's largest ever deal at the time.

Company
Established in 1979, Open International trades under four brands: Open GI, Open GI London, PowerPlace and Blue Fire Communications. The company provides end-to-end software for insurers and brokers, counting more than 19,000 users. Products include tools to enable electronic trading of personal lines of insurance and e-commerce platforms.

Open International is headquartered in Worcester, UK.

People
Chris Guillaume is CEO of Open International. Edward Shuckburgh is a director at Montagu.