Davies, a provider of specialised professional services and technology solutions for insurance and highly regulated markets, has announced a successful £1.5 billion refinancing of its senior debt facilities.
This move significantly lowers its interest expenses, extends debt maturity dates, and secures additional credit lines to support its future growth initiatives.
The agreement maintains the support of existing lender Blackstone Credit & Insurance while also attracting participation from a diverse group of new lenders, including CPP Investments, Alberta Investment Management Corporation (AIMCo), New Mountain, funds managed by Hamilton Lane, and Stepstone Group.
This refinancing not only extends the maturity of existing senior facilities until 2031 but also secures a new credit line aimed at funding strategic projects such as mergers and acquisitions, innovation efforts, and advancements in AI and GenAI technologies within the company.
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.”
Over the last decade, Davies has successfully completed over 50 acquisitions, expanding its range of services and entering new global markets to support its growing client base of more than 1,700 insurance and highly regulated businesses.
In November 2023, the company strengthened its North American claims division by acquiring four claims and services firms from Brown & Brown. In February 2024, Davies enhanced its forensic accounting capabilities with the acquisition of Matson, Driscoll & Damico (MDD).
Davies has achieved single-digit annual organic growth, alongside its strategic mergers and acquisitions, leading to a more than 25-fold increase in revenues since 2014.
Over the past five years, Davies has made significant investments in research and development, innovation in artificial intelligence (AI), platform integration, business systems, staff development, and client service enhancement.
Majority owned by BC Partners, with additional investments from AIMCo and HGGC, alongside Davies’ management and wider team, the firm has evolved significantly following a pivotal transaction in August 2021.
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.”
Currently, the firm employs over 8,500 professionals spanning more than 20 countries, with major operational hubs in the UK and US Davies provides comprehensive professional services and advanced technology solutions across the entire risk and insurance spectrum.
This includes expertise in claims management, underwriting support, distribution strategies, regulatory compliance, risk management, dispute resolution, customer engagement, human resources, digital transformation, and change management initiatives.
