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Randall & Quilter sells insurances services, captive management operations
Randall & Quilter has sold its insurance services and captive management operations to digital solutions provider Davis Group.
The sale follows the previously announced decision to simplify the group's operations to focus on its core, high growth activities.
The agreed valuation of the business being sold is £20m and the net cash consideration payable by Davis, after deducting net debt applicable to the businesses, is around £18.6m.
Randall & Quilter said proceeds from the sale will be used to help finance the growing legacy transaction pipeline, especially in the US and Lloyd's, and to generate commission income from the use of Accredited and Malta's direct licenses.
Chairman Ken Randall said: "The sale of our insurance services and captive management operations is a significant milestone in the group's decision to simplify its operations and focus on our core areas of legacy acquisitions and the writing of quality programme business, which is mostly reinsured to highly rated reinsurers."
Shore Capital said: "We view today's announcement as an excellent outcome for R&Q, representing a clean exit at a strong valuation. The disposals allow the group to focus fully on its legacy business and on underwriting programmes across the US, UK and Europe. Indeed, we refer to the group's indication last week that the pipeline in respect of both legacy deals and underwriting programmes 'remains strong'."
At 1120 GMT, the shares were up 4.9% to 151.60p.