Travelers to Acquire UK-Based Simply Business
March 13 2017 - 8:30AM
Business Wire
Transaction advances company’s digital
agenda
The Travelers Companies, Inc. (NYSE:TRV) today announced that it
has agreed to acquire Simply Business from Aquiline Capital
Partners LLC for an enterprise value of approximately $490 million,
which includes the repayment of debt and other obligations at
closing. Operating since 2005, Simply Business is a leading
distributor of small business insurance policies in the United
Kingdom, offering products online on behalf of a broad panel of
carriers.
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“Simply Business is a profitable and growing technology company
with impressive strategic digital capabilities, leading digital
commerce talent and proven small business insurance expertise,”
said Alan Schnitzer, Chief Executive Officer of Travelers. “With
technology and innovation driving customer preferences and
expectations, advancing our digital agenda to best serve our
customers and the marketplace is a key strategic priority. As an
important part of that agenda, we also look forward to working with
our agent and broker partners as we seek to deploy Simply Business’
capabilities with them to make the small commercial insurance
transaction easier, faster and more efficient.”
Simply Business has more than 425,000 microbusiness customers,
covering more than 1,000 classes of business. Over the past three
years, insurance premiums placed by Simply Business grew at a
compound annual rate of approximately 17.5 percent to £93 million
(approx. $113 million) in 2016. Through its managing general
agency, Simply Business participates as a panel member and
underwrites a meaningful amount of the total premium it places
through its platform each year. This demonstrates the value of its
product and underwriting capabilities, as well as its customer
analytics.
Simply Business has been one of The Sunday Times “Tech Track
100” companies and was included on the Deloitte Technology Fast 500
EMEA (Europe, Middle East and Africa) list. The company was also
named “Best Company to Work For” by The Sunday Times in 2015 and
2016.
“We are very pleased to be partnering with Simply Business, a
dynamic and innovative company that has recently established early
stage operations in the United States,” said Greg Toczydlowski,
Executive Vice President and President of Business Insurance at
Travelers. “Over time, we expect it will provide us with efficient
access to serve the substantial microbusiness market in the United
States and potentially other geographies.”
Toczydlowski continued, “We are committed to preserving the
approach and values that have made Simply Business successful.
Consequently, the company will operate as a stand-alone business,
continuing to partner with its panel of carriers under its
well-known brand name.”
Jason Stockwood, Chief Executive Officer of Simply Business,
said, “This is a tremendous opportunity for our company and
employees, as well as a strong validation of our business model. I
am excited about Simply Business benefiting from Travelers’
extensive knowledge of the U.S. market as we develop our approach
there, as well as the resources it has to support potential
expansion into additional markets. Our shared values and commitment
to innovation make this transaction a perfect fit.”
Travelers will fund the transaction, subject to market
conditions, through a combination of debt financing and internal
resources. The transaction is expected to close in the third
quarter of 2017, subject to regulatory approvals and other
customary closing conditions, and is expected to have an
insignificant impact on Travelers’ 2017 and 2018 earnings per
share.
Skadden, Arps, Slate, Meagher & Flom LLP provided legal
counsel to Travelers in this transaction.
About TravelersThe Travelers Companies, Inc. (NYSE: TRV)
is a leading provider of property casualty insurance for auto, home
and business. A component of the Dow Jones Industrial Average,
Travelers has approximately 30,000 employees and generated revenues
of approximately $28 billion in 2016. For more information, visit
www.travelers.com.
Forward-Looking StatementsAll statements in this press
release, other than statements of historical facts, are
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Actual results of matters
addressed in these forward-looking statements involve risks and
uncertainties and may differ substantially from those expressed or
implied. Some of the factors that could cause actual results to
differ are discussed under the headings “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” in the company’s most recent Form 10-K filed
with the Securities and Exchange Commission (SEC) on February 16,
2017, as updated by our periodic filings with the SEC. Additional
factors that could cause actual results to differ include, but are
not limited to, risks relating to pursuing new markets and
opportunities, including opportunities in emerging markets, and the
risk that Travelers may not realize the anticipated benefits from
the transaction. In addition, the transaction is subject to closing
conditions and may not occur. The forward-looking statements in
this release speak only as of the date of this release, and we
undertake no obligation to update any forward-looking
statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20170313005531/en/
TravelersInvestors:Gabriella Nawi,
917-778-6844gnawi@travelers.comorMedia:Matt Bordonaro,
860-277-7014UK: +44 (0)20-3207-6603mbordona@travelers.comorSimply
BusinessFiona McSwein, +44
(0)20.7920.8000fiona.mcswein@simplybusiness.co.uk
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