Davies reduces cost of debt service and extends maturities as it announces £1.5bn refinance of its senior credit facilities and taps new M&A credit line

2nd July 2024

Davies, the leading specialist professional services and technology business serving insurance and highly regulated markets, today announced that it has agreed a £1.5 billion refinance of its senior debt facilities, significantly reducing its interest bill, extending debt maturities, and securing additional credit facilities to support its next phase of growth.

The deal sees existing lender, Blackstone Credit & Insurance (Blackstone), continue to support Davies, alongside participation from a range of additional lenders, including: CPP Investments, Alberta Investment Management Corporation (AIMCo), New Mountain, funds managed by Hamilton Lane, and Stepstone Group. The transaction refinances existing senior facilities, pushing maturities out to 2031 as well as securing a new credit line to help fund investment in M&A, innovation, and strategic projects, including the firm’s AI and GenAI development.

Dan Saulter, Group CEO, Davies commented: “We are delighted to have secured this refinancing, which saw high demand and very competitive terms. We look forward to continuing to work with Blackstone, as well as bringing in new credit partners to help us fund our next phase of growth. The deal demonstrates confidence in Davies as a leading provider of professional services & technology for insurance & highly regulated markets, but it also recognises the financial strength of our business and our focused and proven strategy for profitable growth”.

In the past 10 years, Davies has completed more than 50 acquisitions, expanding its service offering & entering new geographies to support its growing, global client base of more than 1,700 insurance & highly regulated businesses. In November 2023, the firm added significant new claims and services capabilities to its North American claims business through the acquisitions of four claims and services businesses from Brown & Brown. Earlier this year, in February 2024 Davies added forensic accounting expertise, through the acquisition of Matson, Driscoll & Damico (MDD).

Davies has consistently delivered high single digit annual organic growth which alongside its M&A strategy has seen the firm grow revenues more than 25-fold since 2014. Over the last five years, Davies has invested heavily in research & development, innovation & artificial intelligence (“AI”), platform integration & underlying business systems, colleague development, and client service. Davies’ artificial intelligence claims product, Lauri, has revolutionised the processing of both personal injury, and credit hire claims for the UK insurance market, reducing average handling times by 30 minutes, and supporting the delivery of more accurate claim valuation.

Davies is majority owned by BC Partners, with minority investment from AIMCo and HGGC, alongside Davies’ management and wider team following a deal in August 2021 that saw funds advised by BC Partners acquire a majority stake in the firm.

Cedric Dubourdieu, Partner at BC Partners added: “We’re grateful for Blackstone’s continued support of Davies, of Dan and of the broader team. This refinancing shows conviction in Davies’ strategy, reflects the business’ strong organic and inorganic momentum, and provides further capital to continue that growth.”

Today the firm boasts 8,500+ colleagues working across 20+ countries with large operational centres in the UK & U.S. The business delivers professional services and technology solutions across the risk and insurance value chain, including excellence in claims, underwriting, distribution, regulation & risk, dispute resolution, customer experience, human capital, digital transformation & change management.

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