£50m deal values insurance group at £120m
3i has taken a minority stake in insurance group Hyperion in a deal valuing the business in excess of £120m.
It is understood that 3i's stake in the company is worth £50m. The private equity firm, which took at 27.9% stake in Jelf in February, will support Hyperion as it prepares to enter its next phase of growth. In a statement Hyperion said the move would allow it to expand both the range of products it provides and the territories in which it operates.
3i has made a number of investment in financial services companies in the last 18 months, including ACR, BestInvest, Fulcrum, KNEIP and Gain Capital.
Hyperion was founded in 1994 by David Howden, and now serves clients in 50 countries with offices throughout Europe, Scandinavia, the Middle East, Asia, the Americas and Australia. It has achieved annual growth rates of around 40%.
Hyperion chief executive David Howden said: “In choosing 3i as our partner, it was important to us that they embraced the entrepreneurial spirit of our group and shared our ambition to build a world-beating specialist insurance business. 3i’s long established brand, global network and considerable management expertise, combined with its financial strength, will help us to achieve a faster pace of international growth.”
Gordon Hague, 3i director, added: “We at 3i Growth Capital are thrilled to be backing Hyperion: a global success story and a leader in the specialist insurance sector.This is an outstanding management team and we have been impressed with the quality of people at every level."
