David Ross-led business gets welcome valuation as backers increase equity stake
Ardonagh received a boost today as its wealthy private equity investors valued the firm at nearly £2bn.
Private equity backers MDP and HPS ramped up their stakes in the business, snapping up more shares which values the business at £1.9bn.
In upping their shareholding the investors valued the business at a price of £1.175 per share.
They paid a total of £92m to existing investors and minority shareholders for the increased stake, the majority of which (£82m) was paid by MDP.
It will take MDP’s shareholding from 33% to 43% and HPS’s shareholding from 52% to 54%.
The deal is expected to complete on 7 June this year.
David Ross, chief executive of The Ardonagh Group, said: “We continue to enjoy a truly collaborative relationship with both MDP and HPS.
“Today’s announcement is a further example of the long term commitment to Ardonagh from shareholders who have a deep understanding of the markets in which we operate.”
Vahe Dombalagian, managing director and co-head of the MDP financial and transaction services team, added: “Alongside HPS, we are pleased to affirm our commitment to the Ardonagh platform, and we are excited about the strong trajectory of the business as it keeps strengthening its position as a leading independent insurance broking platform in the UK.
“Ardonagh remains a unique investment opportunity, given its talented management team and diversified portfolio of brands and leading positions in niche markets across a broad spectrum of insurance sectors.”
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