The Independent Directors of esure have reached an agreement with the board of Bidco, a wholly-owned subsidiary of funds advised by Bain Capital Private Equity, LP, and its affiliates, on the terms of an all cash offer for the entire issued and to be issued share capital of esure by Bidco.
Recent market commentary suggested that Bain Capital had made an unsolicited offer for esure, and it’s now been confirmed that an agreement has been reached for Bidco to acquire esure for approximately £1.207 billion (US$1.55bn).
The offer values represents a premium of approximately 37% to the closing per esure share of 204 pence on the 10th of August, 2018, which was the last business day prior to the commencement of the offer period.
Chairman of esure, Sir Peter Wood, commented: “I’m pleased to be announcing this transaction today, because it is a great outcome for shareholders, for the company, and for customers. Since its IPO in 2013, esure has grown to nearly 2.5 million in-force policies, delivered more than £800 million of annual gross written premiums, and returned just under £300 million to shareholders in dividends as well as the considerable value delivered to shareholders through the demerger of GoCompare.
“As a private company and with Bain Capital’s backing, esure will be able to invest behind the innovation required to fully realise the opportunities in this market. I am pleased to be continuing as Chairman and am fully aligned with Bain Capital, who I believe will be a tremendous partner in the next phase of esure’s journey.”
It’s also been announced that Sir Peter Wood will remain Chairman of esure following the completion of the offer, and will reinvest £50 million in Topco (represented by 17,857,143 esure shares).
Robin Marshall, a Managing Director and Co-Head of Bain Capital Europe, added: “Sir Peter Wood is a towering figure in the industry and we would be delighted to be able to take the company that he and his team have built to the next level. We are excited that he will remain a minority shareholder in the company and also grateful that he will remain as Chairman to facilitate a smooth transition to private ownership.”
While Luca Bassi, a Managing Director at Bain Capital Europe, commented: “esure’s nimble and focused approach, lean structure and strong use of technology positions it to grow in a changing insurance industry: insurance companies with smarter operations and better technology are best placed to meet customers’ needs at competitive prices whilst delivering profitable growth.
“We are committed to investing capital in the best technology for esure and believe that this, combined with our experience of growing highly regulated, complex financial services businesses can help esure thrive. We look forward to partnering with esure’s management team to accelerate its growth.”
