IT firm SSP undergoes £207m MBO
IT company SSP – which has a large operation in Solihull – has undergone a £207m MBO backed by private equity firm LDC.
Halifax-based SSP, which provides IT systems and services to the insurance industry in 50 countries, employs more than 700 staff across the world.
The investment will support the management team as it aims to accelerate the growth of SSP in the UK and internationally, building on its strong broker customer base and introducing intelligent data services, including telematics and fraud detection, to help insurers better assess risks.
SSP was formed in 2002 as Software Solutions Partners after it was spun out of American IT group Computer Sciences Corporation in a £20.8m deal.
One of the three founders, David Rasche, will leave the business while Laurence Walker will remain as chief executive. The third founder, former finance director Nick Bate, is currently a non-executive director.
Laurence Walker, group chief executive at SSP, said: “Operating in such a rapidly evolving sector requires continuous investment and improvement in services for our clients.
“The partnership with LDC provides us with the investment to continue to rapidly develop the business, and enables us to fully leverage the expansion of our international office network and the global opportunity to deliver our solutions.”
John Garner, director at LDC who led the deal alongside LDC’s investment director Dale Alderson, said: “Over the last decade, SSP has evolved into a truly global leader that has capitalised on the ever-increasing technological demands of the insurance industry, as well as the financial services sector
“Laurence leads a highly ambitious team that is eager to build on the success of its international network. We are excited to back the business once again and support it through another era of growth.”
Debt was provided by US lenders Guggenheim Investments and Wells Fargo to support the transaction. Martin Jenkins and Paul Roberts at Deloitte provided corporate finance advice to LDC with legal advice provided by a team at Addleshaw Goddard led by Garry Elliott. Deloitte also provided debt advisory and tax support on the transaction.
