Industry Related TransactionsDisability Management Services (DMS) Acquired by Davies
Sellside Advisor To Disability Management Services
7 Mile Advisors Acts As Sellside Advisor To Disability Management Services, Inc. In Their Sale to Davies
This acquisition will help Davies expand their Life & Health claims capabilities in the US.
CHARLOTTE, NC — Disability Management Services, Inc. (“DMS”), a Massachusetts-based disability claims and insurance services third party administrator (“TPA”) has been acquired by Davies, a London-based, leading specialist professional services and technology business, serving the insurance and wider highly regulated markets. 7 Mile Advisors acted as the exclusive sellside advisor to DMS throughout the transaction.
“DMS is the premier individual disability claims administrator. We are pleased to have worked with such a talented management team throughout the process and we look forward to watching their continued success within Davies,” commented 7 Mile Executive Director, Simon Baitler.
7 Mile Advisors executed this transaction in partnership with Paradigm Partners International, a group of Insurance industry veterans who act as strategic advisors to 7 Mile’s Insurance practice, which is led by Nicholas Prendergast, Leroy Davis, Barry Jacobson, and Simon Baitler. This seasoned team of professionals have been active in the insurance space for over 40 years, and bring a unique perspective to transactions being executed in the space. The DMS acquisition is a key cross border transaction that represents the global reach and forward thinking approach of the team.
“7 Mile Advisors’ experience of the M&A process, combined with PPI’s collective 150 years of insurance expertise, proved to be a winning combination. We believe their unique approach left management well prepared to navigate the sale process, while minimizing management distraction and maximizing shareholder value,” said Steve Miller, DMS COO.
Earlier this year Davies deepened its claims administration offering to include long-term care solutions through the acquisition of TriPlus, which joined the firm’s existing Claims Solutions U.S. arm. The acquisition of DMS further broadens Davies’ offering into the Life and Health insurance space, adding disability insurance domain expertise, along with 180 new specialist colleagues, who all join Davies.
The additions of TriPlus and DMS together establishes Davies as a leader in life & health claims administration in the U.S. DMS COO Steve Miller will replace current CEO and founder Bob Bonsall, who has retired upon completion of the transaction. Miller will report to Davies’ U.S. Life & Health CEO, Peter Lucas.
Davies has established and expanded its operations in the U.S. through a combination of strong organic and M&A growth, with the firm now boasting claims capability spanning both the Property & Casualty and the Life & Health insurance markets. Davies’ offering in the U.S. includes a full range of TPA and loss adjusting solutions across all 50 states, as well as captive management and auditing solutions.
DMS CEO, Bob Bonsall, commented, “I am very pleased that DMS is joining forces with an organization that is committed to growth and innovation in the Life & Health insurance market in the U.S. Davies’ history of investing in people and technology, along with a commitment to always put the interests of clients first, aligns well with the values upon which DMS has been built. The cultural fit with Davies was an important factor as we planned for our company’s future and I believe the combination with Davies will present DMS employees more career development opportunities and an exciting future as the company continues to grow.”
Davies Group CEO, Dan Saulter, commented: “It’s exciting that we have been able to bring DMS and Davies together and I am delighted to welcome DMS’ leadership team, along with the company’s broader workforce to our business. Building our Life & Health claims capability in the U.S. is a strategic focus and a growing market. DMS has an excellent reputation, with strong client relationships, and an ethos for great service delivery, all of which provides for close alignment with TriPlus and our wider Davies operations.”
About 7 Mile Advisors
7 Mile Advisors provides Investment Banking & Advisory Services to the Business Services and Technology Industries globally. 7 Mile Advisors advises on M&A and private capital transactions, as well as provides market assessments and benchmarking. As a close-knit team with a long history together and a laser focus on our target markets, 7 Mile Advisors helps its clients sell companies, raise capital, grow through acquisitions, and evaluate new markets. All securities transactions are executed by 7M Securities, LLC, member FINRA / SIPC. For more information, including research on the M&A markets, visit www.7mileadvisors.com.
About Davies
Davies is a multi-award winning specialist professional services and technology business. Davies delivers operations, consulting and technology solutions across the risk and insurance value chain, including excellence in claims, underwriting, distribution, regulation, customer experience, human capital, transformation & change management. Davies’ core service lines include: Claims Solutions, Legal Solutions, Insurance Services and Consulting & Technology. Davies has a 4,000 strong team of professionals across the UK, Ireland, Bermuda, the US and Canada with headquarters in the City of London. Davies’ investors are HGGC, AIMCo (acting on behalf of certain of its clients), and Davies’ employees following HGGC’s majority investment in January 2017 and AIMCo’s minority investment in January 2019. Davies’ programme of digital transformation has seen it successfully launch a range of technology-led solutions in to its insurance and highly regulated markets, including the use of video, drones, robotics and its “Disruptive Thinking” innovation lab that places the power of new ideas in the hands of its people. Over recent years Davies has consistently delivered double-digit organic growth through a combination of growing its solutions with existing clients and adding new partnerships to its business. In September 2020 Davies was named in Sunday Times PwC Top Track 250 as an important mid-market contributor to the UK during the pandemic. In the past year Davies has added more than 150 new accounts to its organic platform. In addition Davies has successfully broadened and deepened its operations and digital capabilities via targeted acquisitions. Since the start of 2017 Davies has acquired: Cynergie, CMSL, Ambant, ServiceTick, TLSS, R&Q’s insurance services business, Ember, Direct Group’s claims businesses, Veriphy, USA Risk Group, TMS, GBB, Banwells, Frontier, FWD, ASC, Thornton Group, Keoghs, Codebase8, Citadel & Cedar Consulting, ContactParners, TriPlus, Johnson Claim Services, Vehicle Replacement Group, BMTS, Wakely Actuarial, Northshore International Insurance Services & DMS. More information is available at www.davies-group.com.
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