Mid-market private equity firm LDC has sold outsourced insurance services provider Direct Group to Ryan Speciality Group (RSG). Financial details were not disclosed.
Direct Group was established in 1990 and provides a range of "white label" services to the insurance sector with a focus on claims, validation and distribution.
LDC backed the management buyout of Direct Group in 2007 and since then has helped the company in diversifying its strategy and broadening its product lines and services. In 2008 the company acquired Millennium, to develop its capability in distribution, followed by the Evander Validation Service business in 2010. In April this year it acquired laptop and mobile inspection specialist Circuit followed by Simple Insurance in June.
According to LDC, since the 2007 MBO, sales have grown by more than 100 per cent, with revenues currently around £20m (€24.9m). Employee numbers have increased from 70 to 450.
Following the transaction, Direct Group’s directors will remain with the business and play an active role in its future development. Carl Wormald and Jon Pickering, who led the transaction for LDC, will both step down from the company’s board at completion.
Nick Roome of DLA Piper and Paul Jones of Clearwater Corporate Finance advised Direct Group's shareholders on the deal.