Cinven, an international private equity firm, has announced it has reached an agreement to acquire Säkra, an insurance broker headquartered in Stockholm.
The details of the transaction have not been disclosed, and it is subject to customary regulatory and antitrust approvals.
Säkra is one of Sweden’s largest insurance intermediaries, providing life and non life insurance products, as well as pension and wealth management services.
The broker provides its services to more than 35,000 SME clients and more than 115,000 individual customers.
Säkra’s acquisition marks the fourth investment from Cinven’s inaugural Strategic Financials Fund (‘SFF’), which held its final closing in July 2022 with total capital committed of €1.5 billion.
According to the announcement, Cinven believes that Säkra is an attractive investment opportunity for the SFF based on the company’s high-quality, cash generative business model and attractive, recurring revenue base; as well as its strong position in the insurance markets it serves, with strong brand equity and a long standing client base.
Other reasons why Cinven believes Säkra is a good investment include its proven track record of steady and consistent growth, delivering robust performance through the COVID-19 pandemic and prior economic downturns; and the opportunity to accelerate the company’s long-term growth profile through a combination of organic growth and incremental bolt-on M&A.
Eva Pantzar Waage, President and CEO at Säkra, commented: “We are delighted to be partnering with Cinven to deliver the next phase of Säkra’s growth. Säkra is a firm with a strong reputation, skilled employees and significant future growth opportunities, with scope to build on the company’s existing strengths through incremental, targeted strategic investments.
“Cinven’s skills and expertise, including its knowledge of the sector and proven track record of investing in established European financial services businesses, will help accelerate Säkra’s growth going forward.”
Luigi Sbrozzi, Partner and co-head of the SFF, said: “Cinven is very pleased to be making this investment in Säkra. It is a highly attractive, resilient specialist insurance intermediary business with strong long-term growth opportunities across all of its segments and a history of consistent growth through various economic cycles.
“The investment is supported by a resilient underlying market in Sweden and is well-positioned to grow organically, with further upside through its demonstrated M&A trajectory. Säkra offers a high-quality scalable platform, with associated benefits for clients as the business develops and expands over the long-term. We look forward to working with Säkra’s CEO and her colleagues in further developing and growing the business.”
