Nexus completes fourth acquisition this year
Trade credit broker Credit Risk Solutions has been acquired by Nexus Group.
Following the acquisition, Nexus Group is now on track to deliver an actual EBITDA in excess of £10m in 2017, and a pro-forma EBITDA in excess of £14m. This is the fourth acquisition Nexus has completed this year. The deal, completed for an undisclosed amount, is expected to accelerate the growth of CRS.
CRS, which has a Halifax office and has 23 staff members, will continue to be led by its founding shareholders Mike Clark, Hayden Tennant and Lisa Humphries, and will remain an open market broker, independent of the underwriting operations of the Nexus Group.
CRS was established in 2003 and also has offices in Manchester and Birmingham. Mike Clark, co-founder of CRS, said: “This is an exciting opportunity for the CRS team. Nexus has identified credit insurance as a product area with considerable potential. We share that vision and, with their support and investment, are absolutely committed to growing this market.”
Post-acquisition, Sue Morley will join the CRS board as a non-executive director. Morley recently retired from her role as client services director of Nexus CIFS.
Colin Thompson, founder and executive chairman of Nexus, said: “CRS is a very professionally run business that has been on a steep growth trajectory in recent years. We are excited to work with Mike, Hayden, Lisa and the whole CRS team to continue this success story in a market where we have a lot of expertise, and accelerate this growth via a buy and build strategy of regional Trade Credit brokers as well as add a UK regional footprint to our existing UK and international infrastructure.
“In Nexus EBA, the group already has a Lloyd’s broker and this acquisition strengthens its broking offering and the diversified range of market leading proprietary products on offer.
Shareholders of CRS were advised by KPMG’s Christian Mayo, Stewart Cape and Ed Crocker.
Christian Mayo, Partner and Head of Corporate Finance at KPMG in Yorkshire commented: “The insurance broking sector is currently experiencing large scale consolidation and there is significant appetite for quality, niche brokerages like Credit Risks Solutions (CRS). The acquisition by Nexus will provide CRS with greater financial resources, which will help accelerate its growth plans and augment its market position.”
